Monday, March 7, 2011

Applied Micro (AMCC) - Calls Trade Size Through the Offer

AMCC is trading $10.50, down 0.6% with IV30™ unched. The LIVEVOL® Pro Summary is below.


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Applied Micro Circuits Corporation (AMCC) provides semiconductor solutions for the enterprise, telecom and consumer/small medium business (SMB) markets.

The company has traded 6,885 contracts on total daily average option volume of just 436. Every contract traded has been a call and all but 116 have been in the Aug expo cycle. The action is in the Aug 12.5 and 15 calls. The Stats Tab and Day's biggest trades snapshots are included (below).

The Options Tab (below) illustrates that the calls are mostly opening (compare OI to trade size). The largest trade was a 3,323 lot in the Aug 15 calls -- the color I got was customer purchases outright (no stock). In fact, all of the Aug 15 calls look to have traded through the offer and the largest Aug 12.5 calls (800x) are also through the offer.

Stock volume is pretty normal for this time of day to the average, so I don't see a bunch of stock trading with any of these calls.

Finally, the Charts Tab (6 months) is below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).

We can see the stock is choppy. The IV30™ is trading below the historical vols (both short-term and long-term). Note that the Aug vol though is over 43 and May is over 41 (IV30™ is just below 40) so the options reflect greater risk in the outer months than the near-term months.

This is trade analysis, not a recommendation.

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