RFMD & AMCC Looking Good….
RF
Micro devices
(
RFMD |
Quote |
Chart |
News |
PowerRating) fell hard yesterday, but today saw Merrill
Lynch recommend the maker of chips for wireless products. Merrill said they
think the firm is on track to “meet or exceed our June and September quarter
estimates.” RFMD has recovered all of yesterday’s losses and is now
higher by $3.05 to 27.83.
Many traders see buying the August 25 — 35 bull call spread as one low-risk way to play
for what Merrill is pounding the table for. If they paid $6.20 for
the Aug 25s and sold a like number of Aug 35s for $2.20, they’re in the
10-point spread for just $4. Best of all, that spread is intrinsically worth
$2.83, so they’re only paying $1.17 in premium.
Another way they may cover their bets somewhat would be to check out Applied
Micro Circuits Corp.
(
AMCC |
Quote |
Chart |
News |
PowerRating), which has seen a similar slide then
recovery. If they were to buy the July 20 — 25 bull call spread for $2, they’d
be in one of RFMDs premier competitors on the cheap. That $5 spread could more
than double in value with just a small rally.
Bearish in Orange
| Symbol
|
Call
Volume color:black”>
|
Put
Volume color:black”>
|
$W
Call Vol color:black”>
|
$W
Put Vol color:black”>
|
| JDSU
|
4,998
|
2,650
|
5,664
|
133,511
|
| CMRC
|
742
|
2,941
|
663
|
122,546
|
| QCOM
|
6,670
|
8,310
|
25,173
|
65,229
|
| GLW4,161
|
3,058
|
10,053
|
72,424
|
|
| AMCC
|
2,971
|
14,245
|
3,581
|
46,018
|
Bullish in Green
| Symbol
|
Call
Volume color:black”>
|
Put
Volume color:black”>
|
$W
Call Vol color:black”>
|
$W
Put Vol color:black”>
|
| AMAT
|
7,263
|
2,162
|
28,549
|
5,798
|
| ORCL
|
14,837
|
4,124
|
33,314
|
3,781
|
(1010WallStreet.com has licensed
the use of Hamzei Analytics proprietary options analytics)