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Technology Stocks : Cohu, Inc. (COHU) -- Ignore unavailable to you. Want to Upgrade?

To: bearshark who wrote (7579)	8/3/2023 10:11:56 AM
From: robert b furman	Read Replies (1) \| Respond to of 7822

Yesterday I looked at the open interest on calls and puts for Cohu. August OI on 40 calls = 496 August OI on 40 puts = 264 August OI on 45 calls = 273 August OI on 45 puts = 1 August OI on 50 calls = 135 August OI on 50 puts = 0 One of two events will happen: 1)On expiration the price of Cohu will be below $40.00 and the calls bought on 408,000 shares will disappear (which is a huge weekly paycheck for those who sold the calls - (I usually attribute that to the MM). 2) The MM accumulates 49,600 shares (below $40.00) before expiration and takes the price up to over $40.00marks them up to assign them all at a profit. If that happened, I'd expect a post option expiration below 40.00, and he'll get them back at a discount. I'm expecting option 1 to be more likely. Uniquely there are next to NO calls or puts in open interest for the next expiration month. 19 $45.00 calls,12 $40.00 puts and 1 $45.00 puts. If the market maker has any inventory - he has a clear runway to mark price up. If he is light on inventory, he can accumulate shares and NOT take a hit on those shares currently in inventory. The more likely is an ABC corrective wave IMO. WE SEE. We're on a double and consolidating. Consolidation means more advance in the future. We are waiting for the reshoring and nearshoring to come on in earnest for the chip sector. Bob