Altera is pushing to a nine-year high, and one investor is tightening up protection.
optionMONSTER's Depth Charge tracking program detected the purchase of 6,500 November 32 puts for $1.30. An equal number of November 31 puts were sold at the same time for $0.70 against existing open interesting, indicating a position was rolled to the higher strike.
The trade, likely implemented by a shareholder, provided an additional $1 of downside protection at a net cost of $0.60.
ALTR is down 0.26 percent to $31.16 in morning trading. Earlier in the session it hit $31.50, its highest price since August 2001.
The chipmaker reported better-than-expected net income and revenue on Oct. 19 and issued a bullish forecast. Management cited strong demand from the telecom and wireless markets.
By using in-the-money puts, today's option strategy will let the investor make money from virtually any decline in the share price. Puts outnumber calls by a bearish 30-to-1 ratio in ALTR so far today.
(Chart courtesy of tradeMONSTER)
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