Bears snapping up puts in Altera

By David Russell,

Shutterstock photo

Altera is struggling to break through a potential resistance level, and some bears think the chipmaker won't make it.

ALTR Chart optionMONSTER's Depth Charge tracking system detected the purchase of 4,010 July 25 puts for $1.70 and $1.75 against open interest of just 77 contracts. Most of the trades occurred shortly after the open, when the stock pulled back from early highs.

ALTR rose 1.72 percent to $24.24 in late morning trading. The company reported better-than-expected first-quarter results on April 20. The stock traded up to an eight-year high the following session but then reversed and has been falling ever since.

Today the shares have been encountering resistance around $24.15, roughly the same level that provided support in late March. They're also attempting to break through their 100-day moving average (purple line on chart).

The put buyers apparently think it won't succeed. ALTR must fall about 4 percent for the trades to turn a profit.

The next scheduled event that could serve as a potential catalyst for the company is an appearance at the UBS Global Technology & Services Conference at 3:30 p.m. ET on June 8.

Overall option volume in the name is twice the average level so far today, with puts accounting for 92 percent of the activity.

(Chart courtesy of tradeMONSTER)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Options
Referenced Stocks: ALTR

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