After refilling a bullish gap at $15, and consolidating, buyers are lining up for call options. There’s also rumor of a buyout, with Texas Instruments named as a possible suitor.
So far today, here’s what’s been happening in the call option pits:
- August 2008 15: volume of 17,667
- August 2008 17.50: volume of 3,726
- September 2008 15: volume of 1,133
- September 2008 17.50: volume of 9,720
- November 2008 15: volume of 4,022
- November 2008 17.50: volume of 8,726
- November 2008 20: volume of 7,430
That’s amazing volume for the stock. While we’re not sure what’s happening behind the scenes, it’s apparent that some one may know something.
If you’re game, we’d recommend a buy on the November 17.50 calls (UVMKW). But don’t risk the house. Part of the call volume may strictly be rumor-related.
Good Investing,
Ian L. Cooper
