Market News

October 25, 2012  Thu 11:19 AM CT

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. 
News Archives

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »