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Technology Stocks : Cohu, Inc. (COHU)
COHU 24.11+6.4%2:13 PM EST
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To: robert b furman who wrote (7545)6/15/2023 1:52:52 PM
From: robert b furman1 Recommendation

Recommended By
the longhorn

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Wondering why Cohu can't hold $40.00?

Always go to the option open interest for a clue.

The only strike prices that have any open interest to speak of are the 35 calls (24) and 40 strike has (393). If Cohu closes over $40.00 he'll have to assign 2400 +39,300 shares of his inventory. If he can buy 41,700 shares back of $40.00, and advance them by the close of tomorrow, he'll make a paycheck for the month. IF he's looking at his book and sees demand for Cohu at a soon to be had higher price, he'll keep the price suppressed and sell at a higher price.

There are other months that are heavy into the 40 strike price on calls: 367 in July and 63 in November.

In short, if Cohu gets carried away over 40 today, his future obligation is to assign 84,700 shares. There is almost no put open interest at all.

So he creating short sales to drive price down (more shares to cover) and keeping the spread wide and to his frustration the trade activity is at low volume 146,000 shares so far todat and I'll bet 25% of those are his shorts. These guys trade to make money, not lose it. Cohu in particular. So there are some sellers lightening up on the poor price action and the MM is probably sweating just a bit. Semi's have become hot again and my bet is he's short on inventory. 92 percent of all shares are held by institutions!

We'll dance below $40.00 till he balances his books.

I just hope he gets it done by the end of tomorrow (June's option expiration date).

Frustrating to watch for me. GRRR

Bob
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