One investor expects more volatility for Rambus.
optionMONSTER's tracking systems detected the purchase of about 1,900 September 12 calls for $1.11 to $1.15 and roughly the same number of September 12 puts for $1.21 to $1.23. Volume was more than 6 times open interest in both strikes.
The trade resulted in a cost of $2.32 to $2.48 and stands to profit from the chip company making a big push up or down. Known as a long straddle, the trade positions the investor to profit from higher option prices in RMBS rather than a straight directional move. (See our Education section)
RMBS is down 1.97 percent to $11.95 in morning trading and has lost more than 40 percent of its value so far this year. It attempted to rally after management issued strong guidance on July 21 but got slammed along with the rest of the market in the recent selloff.
The straddle accounted for most of the options volume in RMBS so far today.
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