Monday, January 4, 2010

LSI Corp (LSI) - Multi Day Call Accumulator

LSI is a $3 billion technology company. The LIVEVOL™ Pro Summary is included below.

LSI averages 613 option contracts traded a day - in the first 2 hours of trading today over 3,300 have traded. Further, all but 10 contracts were calls for a 330:1 call:put ratio. The Company Tab snapshot is included below (click to enlarge).

The day's biggest trades snapshot below (click to enlarge) and the Options Tab snapshot below (click to enlarge) clearly illustrate that the action is in the Apr 7.5 Calls. Further, the green coloring on the biggest trades indicates these are trading on the offer (cust purchases).

From the Options Tab we can see the OI (open interest) in the Apr 7.5 calls is 2006. By digging deeper into the Level II pop up below (click image to enlarge), we can see the steady increase in opening postions in these calls. 12/31/09 shows a spike.

To see if these were purchases or sales I have included the Time & Sales snapshot below for that day (click it to enlarge).

These trades are all green - trading on the offer. It looks like there is a steady accumulation of OTM calls in LSI. On 12/31/09 they traded 0.15; today the bet doubles down paying 0.20.

Legal Stuff:

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