Cabot Microelectronics appears to have a bright future, but
one investor still wants protection.
The company's chemical slurries are used to polish the layers of
silicon on microchips, allowing multiple layers of circuitry.
Given the boom in demand, with chips proliferating not just in
computers and cell phones, but also in automobiles and industrial
devices, it's not hard to see why CCMP is up more than 60 percent
since last summer.
optionMONSTER's Depth Charge tracking system detected the
purchase of 2,500 July 50 puts for $2.50 yesterday and the sale
of an equal number of May 50 puts for $0.60. Volume was below
open interest in the May contracts and above open interest in
June, indicating that a previously existing position was rolled
from one month to the next.
The activity was likely the work of a shareholder who's using the
puts as a protective instrument to guard against a drop. It cost
him or her an incremental $1.90, and occurred one day before the
May puts expire.
CCMP rose 0.48 percent to $49.86 in the session. It peaked at a
seven-year high of $52.69 last month and has been consolidating
its gains since then.
Overall options volume was 34 times greater than average
yesterday, with outs outnumbering calls by 37 to 1.
(Chart courtesy of tradeMONSTER)
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