Options/Futures

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.

  • Loading Comments...
  •  

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • buzz
At the time of publication, McKhann had no positions in any stocks mentioned.

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,741.98 1,159.90 2,374.41 36.87
Oil *
79.80
DOWN
37.19
DOWN
5.92
DOWN
16.87
UP
0.15
10 Yr
3.69%
SPDR Gold
108.28
-0.34%
-0.51%
-0.71%
+0.41%
Data delayed 20 minutes

More From TheStreet

Latest Headlines
  • Top Rated Stocks from TheStreet Ratings
  • Find returns with the Dividend Calendar

Brokerage Partners

TheStreet Premium Services

All Services