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Joe Kunkle
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History/Trading Style: I have been trading for 12 years, since I was 15, and have studied a variety of trading techniques and strategies. I combine many trading philosophies and combine technical analysis, fundamental analysis, and macro-economic analysis into every trade. I mostly trade options... More
My company:
Options Hawk
My blog:
Options Hawk
  • Option Traders Cautious Semiconductors Despite Recent 52 Week High 0 comments
    Dec 4, 2009 11:29 AM | about stocks: SMH, TXN, KLAC, AVGO, MRVL, NSM-RETIRED, INTC

     Traders may be getting cautious on the Semiconductors (NYSEARCA:SMH) after the group hit new highs and Marvell reported a strong quarter.  

    Earlier today a trader rolled 5,000 December $25 puts up to the $27 strike for a better delta trade in Texas Instruments (NYSE:TXN), and now a trader rolled 5,000 December $29 puts up to the $31 strike in Broadcom (BRCM).  

    There is also heavy put buying in the RF Micro (RFMD) January $5 puts.  

    The reversal today in the Semiconductors (SMH) took place right at the 50% Fibonacci Level, similar to what is occurring in the broader markets. As a group, Semiconductors have some of the highest forward PE's in the market, and the outlook may be a bit too optimistic here.

     National Semi (NYSE:NSM and Research in Motion (RIMM) still have to report earnings this options expiration, and there is a Barclays Tech Conference next week.  Additionally, Texas Instruments (TXN) has a mid-quarter update December 8th and Broadcom (BRCM) has a December 15th Analyst day.

    Disclosure: Disclosure: Own puts on ALTR

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