OptionsHouse

Options Trading News

October 25, 2012  Thu 11:19 AM CT

LRCX: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Lam Research have seen low volatility recently, and one trader is apparently expecting that trend to continue.

A block of 6,850 June 36 puts traded for $3.60, optionMONSTER's tracking systems show. Open interest in the strike at the beginning of the day was just 16 contracts, so this is a new position.

Less than a minute later, LRCX saw its largest stock trade when 315,100 shares changed hands for $35.8543--that is the exact total delta of the option position (6,850 x 100 x 0.46). So it appears that the trader is looking for the low volatility of the last week to continue going forward.

LRCX is up 0.45 percent to $35.61 in early afternoon trading. The semiconductor wafer-fabrication company has been in a tight range in the last week after a huge surge following its earnings results. Shares had been down at the three-year low of $31.17. 
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »