National Semi (NSM) is up 35 cents to $14.98 and options activity is running 7X the average daily. Nov 15 calls are seeing a lot of the action. 27.9K traded and, with 82 percent hitting ask-side and open interest of only 4,509, it looks like some investors are buying to open new positions in these at-the-money calls. Meanwhile, it appears that sellers are driving the order flow in Oct, Nov, and Jan10 puts at the $16 strike. The general sentiment seems bullish and comes just 2 days before the chipmaker’s Sep 25 annual shareholder meeting. (IV = 38.4, +1.7)
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.