Options Point to Gains for KLA-Tencor

OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.

David Russell, reporter for OptionMonster.

Options trading turned bullish on chip equipment maker KLA-Tencor ( KLAC) as at least one investor positioned for a near-term pop in the shares.

OptionMonster's tracking systems detected the purchase of 5,000 July 26 calls against open interest of 1,181 contracts. The premiums paid rose from 75 cents to 80 cents as the transactions were recorded, suggesting a strong buying pattern.

KLA-Tencor rose 4.2% to $26.33 in morning trading, but is down 11% after spiking to $29.45 in early June. The semiconductor equipment manufacturer posted a wider-than-expected loss the last time it reported quarterly earnings on April 27. It is also scheduled to participate in an analyst briefing in San Francisco on July 15.

Options volume in KLA-Tencor is more than three times average so far today, with calls outnumbering puts by almost 12 to 1.

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