Options Trading News

October 23, 2012  Tue 4:15 AM CT

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


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »