OptionsHouse

Options Trading News

January 11, 2013  Fri 9:08 AM CT

MCRL: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »