This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Hope ARM Gets Helping Hand

By David Russell, reporter at OptionMonster

NEW YORK -- ARM Holdings (ARMH)has fallen to support, and the bulls want to run it back up.

OptionMonster's tracking systems detected the purchase of about 8,500 June 26 calls for 70 cents. Volume was almost 50 times the previous open interest in the strike.

Those calls lock in the price investors must pay for shares in the semiconductor maker, a key supplier to Apple's (AAPL) iPhone and iPad. These options can generate significant leverage if the stock rallies, but they will expire worthless if it doesn't.

ARM was down when the options traded but later regained its footing and ended the day up 0.39% to $25.22. The shares were trading above $28 in mid-April but gapped lower after management said last week that full-year revenues would only match expectations.

Since then the stock has been holding the same $25 area where it had bounced previously. Wednesday's option activity reflects a belief that the shares will now hold that level and rally in coming weeks.

Overall option volume was quadruple the daily average in the session. Calls outnumbered puts by 3 to 1, a reflection of the bullish sentiment.

Russell has no positions in ARMH.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 -0.13%
FB $87.28 0.43%
GOOG $523.40 0.30%
TSLA $280.02 4.04%
YHOO $39.38 0.13%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports