If this is why CUBE went up on Friday what does it suggest will happen
for the rest of NOV.?
Friday October 30, 12:50 am Eastern Time
U.S. OPTIONS/Semiconductors draw
renewed interest
CHICAGO, Oct 29 (Reuters) - Options on several
semiconductor stocks were active on Thursday after Micron
Technology Inc. (NYSE:MU - news) made upbeat comments,
sending its shares to a new high for the year and lending support
to the entire sector.
Micron official Kipp Bedard, speaking to investors at SG Cowen's annual electronics conference in
La Quinta, Calif., said the computer memory chip maker expected pricing for its products to remain
firm through the holiday season's personal computer building boom.
Trading in Micro options was brisk, especially on the Pacific Exchange, where several put and call
contracts were listed among the most actively traded.
A market maker noted big out-of-the-money call sellers early on, and buyers of out-of-the-money
calls late in the session.
Implied volatility, a key factor in determining options prices, dipped to around 54 percent for the
November 40 contracts, he said.
The stock finished up 4-1/16 at 39-15/16 on heavy volume of 9.7 million shares, making it the
second most actively traded stock on the Big Board after Citigroup (NYSE:CCI - news).
Options on Texas Instruments Inc. (NYSE:TXN - news) drew good trading volume, with the
November 50 calls and puts topping the most active list on the Chicago Board Options Exchange.
A market maker there said traders on the floor sold the calls, bought the puts and bought the stock
in equal numbers.
Texas Instrument stock rallied 2-15/16 to 63-15/16.
Elsewhere in the sector, the November 20 calls on Advanced Micro Devices Inc. (NYSE:AMD -
news) were among the most heavily traded on the Pacific Exchange, with almost 3,000 contracts
changing hands.
Traders linked most of the volume to speculative call buying on the back of comments from Micron.
Advanced Micro stock advanced 1-3/16 to 20 in active dealings.
SIGH. Can't anyone differentiate DRAM from other silicon? |
