RF Micro Draws Big Bearish Trade
Stock quotes in this article:RFMD
By Chris McKhann , analyst at OptionMonster
GREENSBORO, N.C. (TheStreet) -- RF Micro Devices (RFMD) 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.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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