Microchip Technology is seeing enormous options trading amid rumors of a possible takeover by chip giant Intel.
By midmorning Tuesday alone, MCHP had already seen four times its normal call volume, according to OptionMonster's systems, which track unusual options activity. The February 22.50 calls and the March 22.50 calls are trading at 10 times the open interest at $0.10 and $0.35 respectively.
- MCHP: Insider Trading
- Goldman's Blog: Intel's Stunning Investment
MCHP stock is lower by about 4 percent at $19.77 in midday trading but was as high as $20.86 at the open, still 55 percent below its 52-week high.
Microchip Technology, which manufactures specialized semiconductor products, will present at the Thomas Weisel Partners Technology & Telecom Conference tomorrow.
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Big Chip Makers:
Advanced Micro Devices
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.