CNBC Stock Blog

KLA-Tencor Shares: What Options Are Saying

Chris McKhann|writer, OptionMonster

KLA-Tencor has been sitting right around $36 for two weeks, but new put buying shows concern about the downside.

The semiconductor equipment company currently trades at $36.09, flat on the day as of this writing. KLAC stock has oddly hovered around this level since running up from $32 coming into the month.

Traders are apparently concerned that the stock has stalled here, as we see a chunk of institutional put buying. More than 2,500 January 37.50 puts have changed hands, 2,000 of those bought in one trade for $2.30. The trade compared with against open interest of just 310 contracts, so this in-the-money put buying is new opening positions, 's tracking systems show.

This type of buying is clearly looking for a way to profit from a fall in KLAC without having the risk of shorting the stock.

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Chris McKhann is an analyst and writer for .