Vishay Intertechnology is trying to hold a 52-week low, and one
investor has confidence it won't break.
optionMONSTER's monitoring systems detected the sale of about 2,000
January 7.50 puts for $0.60 and more than 1,600 January 10 puts for
$1.80 and $1.85. Volume was more than triple open interest in both
VSH is up 2.13 percent to $9.11 in midday trading but came into the
session down 50 percent in the previous six months. The
semiconductor stock is now down to a price area last visited in
September 2010 and is attempting to hold support around a
resistance level from June and July of that year.
Vishay's last earnings report on Aug. 2 missed estimates and
management issued weak guidance.
probably thinks all the bad news is priced in and expects VSH to
hold its ground or push higher. The sale of the January 10 puts is
especially noteworthy because they're
in the money
. That means they will appreciate rapidly if VSH climbs and are
similar to owning shares or calls. (See our
Overall option volume is 8 times greater than average in the name
so far today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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