Market 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.
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 »