RF Micro Draws Big Bearish Trade

By Chris McKhann , analyst at OptionMonster

GREENSBORO, N.C. (TheStreet) -- RF Micro Devices (RFMD Quote) has seen a lot of volatility over the last few years, and one trader sees more of it in the next few days for the semiconductor company.

The stock closed Wednesday off 0.6% to $4.72, and one trader expects the shares to fall further by Friday's expiration. OptionMonster's tracking systems show the purchase of 4,900 of the October 5 puts for 40 cents.

This volume is twice the open interest, indicating newly opened positions. The 20-day average total options volume for RF Micro has been just 1,497.

The shares only have to drop to $4.60 to make these puts profitable. The price was below that on Oct. 2 and as high as $5.85 a month ago, so a 12-cent move doesn't seem out of the question.