Put selling signals faith in Vishay
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 strikes.
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.
Today's put seller 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 Education section)
Overall option volume is 8 times greater than average in the name so far today.