" title="AMZN : Stock Quote, News and Research" class="showrtquote">AMZN - Amazon.com, Inc. –
Shares of the online retailer surged to an all-time high of $125.44
during the trading session. Investors exchanged approximately 241,000
option contracts on AMZN by 3:00 pm (EDT), which represents about 41%
of the total existing open interest on the stock of 591,993 lots.
Bullish investors expecting Amazon to rally even higher purchased 7,000
calls at the November 135 strike for an average premium of 1.84 apiece.
Optimism spread to the higher November 140 strike where 2,800 calls
were picked up for 1.05 each. Super bullish traders looked to the
highest available strike price in the front month – the November 150
strike – to purchase 1,000 calls for an average premium of 31 cents per
contract. Shares of Amazon.com rallied 36% to reach today's intraday
high of $125.44, climbing up from an intra-week low of $91.98 on
Thursday October 22, 2009. Investors holding calls at the November 135
strike will profit by expiration if shares of AMZN gain 9% over the
high of $125.44 to breach the breakeven price of $136.84. Finally,
near-term put options were also in demand by investors looking to lock
in gains enjoyed during Amazon's recent run-up. Traders shelled out an
average of 6.92 per contract to buy 3,100 puts at the November 125
strike.
" title="MU : Stock Quote, News and Research" class="showrtquote">MU - Micron Technology, Inc. –
Option traders invested in April contract call options on the
semiconductor manufacturer despite the 0.5% decline in shares to $7.41.
It appears some 9,200 calls were purchased by MU-optimists at the April
8.0 strike for an average premium of 1.08 per contract. Call-buyers
apparently expect shares to rally significantly within the next six
months. Investors holding the call options will profit by expiration if
shares of MU rally at least 22.5% to the breakeven point at $9.08.
" title="ETH : Stock Quote, News and Research" class="showrtquote">ETH - Ethan Allen Interiors, Inc. –
Home-furnishings retailer, Ethan Allen, experienced a more than 14%
decline in shares today to $14.30 after the firm forecast a
wider-than-expected loss of 21-23 cents for the first quarter. Analysts
predicted an 8 cents per share loss before the firm lowered guidance
last week. Long-term downside protection is in demand as traders picked
up some 5,500 puts at the May 12.5 strike for an average premium of
1.76 apiece. Investors holding long positions in the underlying stock
will find protection kicks in if shares slip beneath the lower
breakeven point at $10.74. It could be the case that the puts were
bought by traders holding no position in the ETH shares. These
individuals are merely taking a long-term bearish stance on the stock
to potentially profit from further declines. Shares must fall 25% from
the current price for ETH-pessimists to bank gains by expiration.
AMR - AMR Corp. –
The operator of American Airlines suffered a 6% decline in shares to
$5.92 today. The share price erosion inspired some option traders to
make bearish moves on the stock. Approximately 8,200 puts were scooped
up at the December 6.0 strike for 61 cents per contract.
