Cypress Semiconductor (CY) is under pressure, now down 19 cents to $12.08 and put options are busy on the chipmaker Wednesday. Approximately 19,000 contracts have traded so far, which is 12X typical volume for midday and compares to 560 calls. The action is scattered across Dec, Jan, and March 9, 10, 11 and 12 puts. No news to explain the action and implied volatility is down 2.5 percent to 36. Shares are up more than 20 percent since August 26 and some investors might be closing out short puts after the run higher. Open interest is sufficient to cover in all of today’s most actives.
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.