AMKR – Amkor Technology, Inc. – The sale of a large chunk of put options on the provider of semiconductor packaging and testing services suggests one strategist expects Amkor’s shares to exceed $5.00 through expiration in January 2011. AMKR’s shares rallied at the end of last week after the firm posted better-than-expected second-quarter results and forecast increased demand in the third quarter. The price of the underlying stock is roughly unchanged today at $6.03 as of 2:40 pm ET. The put seller shed 5,000 lots at the January 2011 $5.0 strike to take in premium of $0.40 per contract. The investor responsible for the transaction keeps the full premium received as long as Amkor’s shares trade above $5.00 through expiration day. The transaction indicates the investor is happy to have shares of the underlying stock put to him at an effective price of $4.60 each should the puts land in-the-money at expiration next January.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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