Options Bulls Eye Cypress Semiconductor
By: Cypress Semiconductor has had a brutal quarter, but now the buyers are coming back.
CY rose above $16 during yesterday's session before giving back some of those gains to close at $15.90, up 1.79 percent. The chip maker's shares had traded above $22 in early July.
Multiple large blocks were bought in the October 17 calls for $0.20 to $0.25, according to OptionMonster's real-time tracking systems. More than 17,000 of the calls traded against previous positioning of just 3,713 contracts, pushing CY's total option volume to 8 times greater than its daily average.
These calls will be profitable if the stock gains at least 8.5 percent by the time they expire on Oct. 21. The company will report earnings before the bell a day earlier, on Oct. 20.
Total calls at all strikes in the name outnumbered puts by more than 60 to 1, another reflection of bullish trader sentiment.
Second Opinion: Cramer's Take on Semiconductors
—Najarian has no positions in CY.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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