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Amkor Technology, Inc. (Amkor) is a provider of outsourced semiconductor packaging (assembly) and test services.
The vol is popping, the options are active, but I don't know why... The company has traded over 28,000 contracts on total daily average option volume of just 278. Calls have traded on an 11:1 ratio to puts with the action focused in the Aug 6 calls where more than 21,000 have traded. The Stats Tab and Day's biggest trades snapshots are included (below).
The Options Tab (below) illustrates that the Aug 6 calls are mostly opening (compare OI to trade size). Here's a stat for you: The total OI on all lines for all months in AMKR was 10,861 as of this morning. That should put the 21k+ calls in context in terms of size. Said plainly, the bets today in the Aug 6 calls are larger than all existing bets on all other lines in all other months by two fold.
The Skew Tab snap (below) illustrates the vols by strike by month.
The shape of the skew is pretty surprising to me. Both months (Aug and Sep) show downward sloping skews to the OTM calls. There is an elevation between the Aug 6 calls (where the trades are) and the Sep 6 calls -- but only five points. More holistically, Jul vol is up 13.5 points (36.7%), Aug vol is up 21.6 points (51.2%) and Sep vol is up 12.9 points (29.4%). Or, in English, Aug vol is reacting the most to the order flow (which makes sense)
Finally, the Charts Tab (6 months) is below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20 - blue vs HV180 - pink).
The 52 wk. range in stock price is [$5.05, $8.49] and the 52 wk. range in IV30™ is [$37.39, 80.80]. The 80 vol day was on 7-22-2010, when the stock price closed at $5.76.
Possible Trades to Analyze
Buying vol feels expensive relative to the historical measures, BUT, the Aug 6 straddle is worth ~$1.20. With the flow today and the stock moving ~$0.50, maybe that isn't high enough?... The Jul 6 puts are no bid @ $0.10. That feels cheap too, no?
Either way, it's all about the news -- so figure that out, then analyze some trades.
This is trade analysis, not a recommendation.
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