CNBC Stock Blog
- Why You Should Play the Reflation Trade: Stock Picker
- S&P to Hit 1,200 by Year-End: Chief Investor
- 5 Big Bank Stocks Investors Should Consider: Strategists
- My 2010 Home Price Outlook: UBS Analyst
- Why Are Options Piling into Dollar Tree?
- Markets Can Rise 5-10% in the Near-Term: Strategist
- Buy These 'Competitively Positioned' Stocks: Portfolio Manager
- 5 Stocks That Benefit from Health Care Legislation: Analysts
- 9 Stocks That Play Rising Water Costs: Strategists
- Gold Prices Can Double in 3 Years: Portfolio Manager
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- NBA D-League On The Rise
- The Social Media Gaming Threat
- Obama Reiterates Commitment to Boost US-India Ties
- Stifling Anger at Work Can Kill, Survey Finds
- Japan Export Rebound Eases Fear of New Recession
- Australia Wheat Exporters Face Challenges: GrainCorp
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- NBA D-League On The Rise
- Sales of New Homes Forecast to Rise 2%
- Americans Ditch Planes for Trains this Thanksgiving
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Reiterates Commitment to Boost US-India Ties
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Wednesday's Economic News Crunch Could Tilt Markets
- Call Me Crazy: Confessions of a Black Friday Shopper
- Starbucks Eyes China as Next Major Market
- Citi Mortgage Reveals Something the US Treasury Won't
RSS FEED
Text Size 
Managing Editor, OptionMonster
As analysts debate the health of the semiconductor sector, at least one trader is apparently confident that chipmaker Analog Devices has room to run higher.
Yesterday's option activity was focused on the November 27.50 strike, where a single block of 2,000 calls was bought for $1.65, according to OptionMonster's real-time tracking systems. The average turnover is only 24 calls per day at the strike, which showed open interest of 378 contracts.
Analog Devices [ADI
Loading...
()
] finished the day up 1.6 percent to $28.02. The stock hit a new 52-week high of $29.71 just on Sept. 10 but then slipped and has been bumping up against resistance around $28.
For the calls purchased yesterday to turn a profit, the stock would need to gain at least 4 percent by the time the options expire on Nov. 20. The company is scheduled to release its next quarterly earnings report on the very next trading day after expiration.
The health of the chip industry remains in general remains an open question. Earlier this month, for example, Analog Devices was one of several chipmakers to receive a lower rating when Broadpoint Amtech downgraded the entire semiconductor sector. Yesterday, however, Goldman Sachs reiterated its 2010 forecast of 13 percent growth in handset units, an area where Analog Devices hopes to expand.
___________________________
Analog Devices Competes With:
STMicroelectronics [STM
Loading...
()
]
Texas Instruments [TXN
Loading...
()
]
___________________________
Options Trading School:
___________________________
___________________________
Mike Yamamoto is an analyst and writer for OptionMonster.
___________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes