Unusual Option Opportunity In Atmel

According to Options and Volatility, shares of Atmel Corporation ATML saw unusually high options activity on Wednesday. Notably, the September 8 calls traded 14,238 contracts versus only 494 open interest, with August 9 call options also seeing above average volume as well.

In addition to the increased volume, the implied volatility on the September 8 calls rose, moving from 52.97 percent on Tuesday's close to 59.07 percent on the close Wednesday, an increase of nearly 11.5 percent. This set up a covered call opportunity, buying shares of Atmel and selling a September 8 call for each 100 shares purchased.

Options and Volatility noted this captures a 1.63 percent edge and positions bullishly along with the large call buyer. The September 8 calls have a delta of 57, while the covered call position has a slightly less bullish delta of 43. Atmel has already reported earnings on July 28, with the next earnings not due until mid October.

Shares closed Wednesday at $8.13, up $0.22, with the September 8 calls closing up 0.18 at 0.68.

Disclosure: The author had no position in Atmel at time of publishing.