What's behind NetApp call selling
Chris McKhann | [email protected]
optionMONSTER systems detected the purchase of 9,800 October 45 calls for $0.24 against open interest of 17,613. At the same time the trader sold 9,800 November 47 calls for the bid price of $0.45 in volume far above open interest of just 863, so that is a new position.
The trader appears to be rolling a short-call position forward by a month. The new November short calls are likely part of a covered-call position against long shares, a strategy that is bullish up the $47 strike price but gives up any gains above that level. (See our Education section)
NTAP was down 1.28 percent on Friday to close at $42.58. The network-storage company hit a 52-week high of $42.58 last week as it continues to trend higher from support at $33 in the last five months.
More than 32,000 NTAP options change hands on Friday, more than 4 times its daily average in the last month.