ARM Holdings has fallen to support, and the bulls want to run it
Our tracking systems detected the purchase of about 8,500 June 26
calls for $0.70. Volume was almost 50 times the previous open
interest in the strike.
lock in the price investors must pay for shares in the
semiconductor maker, a key supplier to Apple's iPhone and iPad.
These options can generate significant leverage if the stock
rallies, but they will expire worthless if it doesn't. (See our
ARMH was down when the options traded but later regained its
footing and ended the day up 0.39 percent to $25.22. The shares
were trading above $28 in mid-April but gapped lower after
management said last week that full-year revenues would only match
Since then the stock has been holding the same $25 area where it
had bounced previously. Yesterday's option activity reflects a
belief that the shares will now hold that level and rally in coming
Overall option volume was quadruple the daily average in the
session. Calls outnumbered puts by 3 to 1, a reflection of the
(A version of this post appeared on
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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.