Amkor Technology is trading at its highest level in nearly six years, and one large investor is doubling down for more gains.
A trader sold 2,000 June 9 calls for $0.90 and $0.95 and, at the same time, bought 4,000 September 11 calls in one block for the ask price of $0.40, according to optionMONSTER's Heat Seeker tracking system. Volume was below previous open interest in the nearer-term contracts but above it in the later strike, indicating that a position was rolled forward.
The trader is taking some profit in the June calls and using the rest of the proceeds to purchase twice as many September contracts at a strike that is $2 higher. The new long calls are looking for AMKR to rally above $11 by mid-September but could expire worthless if it remains below that strike price. (See our Education section)
AMKR rose 3.25 percent yesterday to $9.90, its highest close since July 2008. Shares of the the semiconductor packaging and testing company have nearly doubled since mid-February.
Total option volume in the name was more than 11 times its daily average for the last month. Overall calls outnumbered puts by 16 to 1.
Disclosure: I own AMKR shares.
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