Cohu, Inc. (COHU) Message Board

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Technology Stocks : Cohu, Inc. (COHU)

COHU 23.88

-4.2%

Dec 12 3:59 PM EST

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To: robert b furman who wrote (6315)	2/6/2017 1:07:26 PM
From: robert b furman	Read Replies (1) of 7827

To all on the thread, An interesting observation about Cohu and it open positions in options. If one looks at the farthest out option that can be bot or sold it currently is August 2017. That means some on is buying and/or selling to get the maximum time premium. I've watched puts and calls on Cohu for several years now. Cohu and it very discouraging long term sideways price action has been nothing but a bore - except if you sold puts out in time and took advantage of time decay. It has in fact paid off more than owning the stock and collecting the dividend. Seldom has there ever been an open interest in any put of call - in any price bracket that has ever exceeded 200 contracts. But note that in the august month there is an unprecedented open interest in the $12.50 puts of 3000 contracts!! That covers 300,000 shares - more than 1% of the outstanding shares. Even more unusual is a 399 open interest in August 15's and 127 open interest in the August 12.50 (in the money some 65 cents. That's an assignable transaction of 52,600 shares. Looking at the May open interest ,there are 338 calls at the $15.00 strike price and 179 calls at the 12.50 strike price with only 150 puts at the 12.50 strike price. The calls represent an assignable transaction of 51700 shares. Put sales that represent 315,000 shares and call sales that represent 104,300 shares. All of the puts are on the 12.50 strike price. The majority of the calls are on the 15.00 call. My read on that is, you sell the in the money put to raise funds to help pay for the out of the money calls. That IS a historic size put / call play with on Cohu. Going out to August got the most time premium in the puts and spreading it out betwwen May and August with the calls is a hedged bet that either Q1 (which will be announced inApril) or Q2 (which will be announced in August - just before option expiration) will be very good bullish eps and /or guidance numbers. Recommend every one goes to Brooks Automation webcast of last week and listen to Steve Schwartz say "It's no secret the semi equipment business is good now (referring to front end equipment). Years ago a previous CEO Chuck Schwan made the statement that back end orders had notoriously short lead times. Every one wants them tomorrow after the line ramps up. So it is a fairly well informed hedge that Cohu may be a quarter behind the boost in front end equipment orders / deliveries. NONE THE LESS - A HUGE BET ON COHU with in the open interest of both put and call options. Gentlemen - place your bets. Some one much bigger than us already has - ride on the coattails of some one with much bigger money than we little guys!!! Best of trades to all on this thread. Earnings out on the 16th this month - It would not surprise me to see a dip down in price - it is almost a rule for this Market Maker to extract pain - just befor earnings!!! screencast.com Buy the dip boys and girls!!! BUY THE DIP !!! Bob

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