What's behind call selling in Micrel
Chris McKhann | [email protected]
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.