Altera is struggling to break through a potential resistance
level, and some bears think the chipmaker won't make it.
optionMONSTER's Depth Charge tracking system detected the purchase
of 4,010 July 25 puts for $1.70 and $1.75 against open interest of
just 77 contracts. Most of the trades occurred shortly after the
open, when the stock pulled back from early highs.
ALTR rose 1.72 percent to $24.24 in late morning trading. The
company reported better-than-expected first-quarter results on
April 20. The stock traded up to an eight-year high the following
session but then reversed and has been falling ever since.
Today the shares have been encountering resistance around $24.15,
roughly the same level that provided support in late March. They're
also attempting to break through their 100-day moving average
(purple line on chart).
The put buyers apparently think it won't succeed. ALTR must fall
about 4 percent for the trades to turn a profit.
The next scheduled event that could serve as a potential catalyst
for the company is an appearance at the UBS Global Technology &
Services Conference at 3:30 p.m. ET on June 8.
Overall option volume in the name is twice the average level so far
today, with puts accounting for 92 percent of the activity.
(Chart courtesy of tradeMONSTER)