Goldman had probably insider knowledge - they should investigate - they made a killing.
This timing stinks - that was insider info leaked out!
GS told couple months ago to buy options
Varian Semiconductor calls buck slump
optionmonster
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Companies:
o Varian Semiconductor Equipment Associates Inc.
Related Quotes
Symbol Price Change
VSEA 61.30 +20.75
Chart for Varian Semiconductor Equipment
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Mike Yamamoto (mike.yamamoto@optionmonster.com), On Thursday April 14, 2011, 3:08 am EDT
Traders are looking for a sharp rise in Varian Semiconductor Equipment despite the recent slump in the chip sector .
optionMONSTER's Heat Seeker system shows that 3,126 May 55 calls traded against open interest of just 372 at the strike, so these were new opening positions. The options changed hands with a strong buying bias, going for prices between $0.20 and $0.40.
The activity dwarfed VSEA's average total volume of 500 per day. Its calls outnumbered puts at all strikes by 7 to 1.
VSEA fell 0.68 percent yesterday to close at $43.87, continuing its steep decline since trading over $49 just one week ago. Shares of the chip-making equipment company had been climbing steadily from its 52-week low of $24.40 at the end of August last year but began a roller-coast ride after peaking over $50 on Feb. 18.
Earlier this week Barclays repeated that Varian is one of its " top picks " in a research note that cited strength in flash memory and increased capital spending by Intel and other chip makers. The bank maintains an "overweight" rating on the stock.
Traders may also expect VSEA to bounce off support around the $41 level, which it has done twice this year. The company is scheduled to release its next earnings report after the market closes on April 28.
For the calls bought yesterday to turn a profit, Varian's stock needs to gain at least 26 percent in the next month before the contracts expire.s |
