CREE – Cree, Inc. – The manufacturer of semiconductor materials and devices appeared on our ‘hot by options volume’ market scanner in morning trading due to bullish trading in the August contract. Cree’s shares scurried up 2.3% to stand at $59.68 as of 12:42 pm ET. Investors hoping Cree’s shares will continue to rise ahead of expiration on Friday purchased roughly 1,600 call options at the August $60 strike for an average premium of $0.89 each. Call buyers at this strike stand ready to make money should Cree’s shares rally above the average breakeven price of $60.89 by expiration. Optimistic players picked up another 1,100 calls at the higher August $65 strike for an average premium of $0.11 each. These traders profit if the semiconductor maker’s shares surge 9.1% to exceed the effective breakeven point at $65.11 by Friday. Approximately 18,235 option contracts changed hands on Cree, Inc. by 12:45 pm ET.
Affiliation: Interactive Brokers
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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