Options Trading News

January 11, 2013  Fri 9:08 AM CT

Unusual option volume in integrated-circuits company Micrel is dominated by call selling.

optionMONSTER's systems show that 5,349 MCRL options have already changed hands this morning, compared to a tiny daily average of 2 contracts and total open interest of just 84. A trader sold 5,000 February 10 calls for the bid price of $0.30 on a wide bid/ask spread of $0.30/$0.45.

The call selling isn't tied to any stock activity today--in fact, while the calls give the right to buy 500,000 shares, only 20,000 have traded so far today. But given these options are at the money, they were likely sold against a large existing position in MCRL. (See our Education section)

The stock is now down fractionally at $9.96. It was at a 52-week low under $9 in mid-November but has been hovering around this $10 mark since the start of the year.
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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.

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