OptionsHouse

Options Trading News

October 23, 2012  Tue 4:15 AM CT

KLIC: SEE CHART GET CHAIN FIND STRATEGIES
Kulicke & Soffa Industries has some great-looking numbers, and upside option activity gained pace yesterday afternoon.

optionMONSTER's Heat Seeker system detected the purchase of 2,100 January 11 calls in two blocks at the same second for $0.30. The volume was above the open interest of 1,797 contracts at the start of the session, so this is fresh buying.

Calls lock in the price where investors can buy shares and can generate some nice leverage if the stock rallies. But these options will expire worthless if it doesn't move. (See our Education section)

KLIC rose 2.01 percent to $9.64 yesterday. The company, which makes equipment used to assemble semiconductor devices, has a great-looking balance sheet and cash flows, with valuation levels in the single digits.

Overall calls outnumbered puts by about 3,200 to 400, a reflection of the session's bullish sentiment. Total volume was 4 times greater than average.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »