Universal Display has been consolidating since early 2011, and
one investor apparently believes that it is poised for a rally.
optionMONSTER's tracking systems detected the sale of 1,275 May 40
puts for $3.25 and the purchase of an equal number of May 35 puts
for $1.25. Volume was more than twice open interest at both
put credit spread
, the strategy reflects a belief that PANL will close at or above
$40 on expiration. It's currently up 3.37 percent to $40.19 in
In return for making that bet, the investor collected $2 of income.
If the trader is wrong, the maximum loss will be $3.
The transaction also takes advantage of high
in the stock, which is at 66 percent versus its 45 percent historic
level. The shares are up 3.09 percent today to $40.08. (See our
PANL owns patents on organic light-emitting diodes, which are more
efficient than normal LEDs. Its technology has a wide range of
potential applications, from lighting to flat-screen televisions.
The company's shares, which more than tripled between April 2010
and April 2011, have been swinging in a range since then. The last
earnings report on Feb. 28 beat expectations on the top and bottom
lines, but outlook was below expectations amid uncertain timing on
orders from Samsung.
Overall option volume is triple the daily average so far today.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.