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Silicon Image sees huge call roll

Chris McKhann (chris.mckhann@optionmonster.com)

A huge call trade dominated the option activity in Silicon Image on Friday, ahead of its earnings report next week.

About 29,400 SIMG options traded in the session, compared to total open interest of 22,779 and a daily average of just 199 in the last month. All but a handful of contracts were in one transaction.

optionMONSTER's Heat Seeker system shows that a trader sold 14,500 October 5 calls for $0.35 against previous open interest of 15,522. He or she also bought same number of November 5 calls for $0.56 in volume far above that strike's open interest of 500, so it is a position.

This is almost certainly a roll of a long-call position from the October contracts, which expired at the end of Friday's session, to November. Because these calls are in the money , the investor spent only $0.21 to stay in the trade for another month. (See our Education section)

SIMG gained 2.33 percent on Friday to close at $5.48, in the middle of its recent range. It traded above $6 going into August.

The company, whose semiconductors are used in high-definition technology, is scheduled to release third-quarter results after the market closes on Oct. 29.

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