Options Brief: Cree, Inc. (CREE)

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.

About Andrew Wilkinson 1023 Articles

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

Be the first to comment

Leave a Reply

Your email address will not be published.