Sanmina-SCI exploded higher yesterday on a strong earnings
report, and investors apparently think that there's no going back.
optionMONSTER's tracking systems detected the sale of about 4,600
August 11 puts in Sanmina, which assembles a broad array of
electronics such as computers and circuit boards for other
companies. Premiums declined from $0.65 to $0.35, driven lower by
the shares rising and the strong selling pressure.
SANM ended the session up 21 percent to $11.19 after earnings and
revenue exceeded forecasts. The rally came two sessions after rival
Flextronics surged on a strong report of its own.
Selling puts reflects a belief that SANM will hold its ground or
push higher into expiration. It also stands to benefit from the
accelerating pace of time decay that will occur in the next three
weeks. (See our Education section)
Overall option volume in the stock was 35 times greater than
average in yesterday's session.
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