LSI – LSI Corp. – Investors sold in- and out-of-the-money call options on LSI Corp. throughout the trading session today with shares of the semiconductor company trading 1.8% lower on the day to arrive at $4.30 by 3:15 pm ET. Trading traffic was heaviest in the April 2011 contract where more than 30,000 calls changed hands. Traders sold at least 11,000 in-the-money calls at the April 2011 $4.0 strike at an average premium of $0.65 per contract. Another 14,400 calls were sold at the higher April $5.0 strike for an average premium of $0.20 apiece. Perhaps call sellers are expecting LSI’s shares to continue fall. Investors keep the full premium received on the sale if the calls land out-of-the-money at expiration.
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.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers