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
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »