OptionsHouse

Options Trading News

September 30, 2013  Mon 2:45 AM CT

NTAP: SEE CHART GET CHAIN FIND STRATEGIES
A large trader was selling calls in NetApp as shares lost ground on Friday.

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.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »