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• Top 10 list of unusual option activity

• PMCS 0% Rate It

PMC Sierra is trending lower, and one investor is selling into strength.

optionMONSTER's tracking programs detected the sale of about 4,700 January 7.50 calls for $0.83 against open interest of just 1,038 contracts. The trade pushed total options volume in the semiconductor supplier to more than 17 times the daily average.

PMCS fell 2.65 percent to $7.72 in early afternoon trading and is down 19 percent since mid-April, when it traded over $10. The company's earnings and revenue narrowly beat forecasts the last time it issued results on July 22.

The shares have been making lower highs and lower lows for the last 13 months and now seem to be hitting resistance at its 100-day moving average (red line on chart at right). Some chart watchers may interpret that price action as evidence of a bearish trend.

Selling calls allows the investor to make money as time passes. In this case, that will happen if PMCS closes below $8.33 on expiration. The trade could have been implemented by a shareholder looking to earn income against a long position in the stock or as an outright bearish bet.

The call selling accounts for almost all the activity in the name so far today.

(Chart courtesy of tradeMONSTER)

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