Bullish Option Play in LSI Corp.
Networking and flash-storage company LSI (NYSE: LSI) saw its shares trade as much as 21% higher on Thursday.
The company reported earnings on Wednesday afternoon, and numerous analysts upgraded the name on Thursday.
Option activity heated up Thursday with what looks like an opening seller of October 7 puts at $0.55. More than 9,000 of these contracts have traded so far helping to push total contract volume in LSI to 4 times its average daily contract volume.
Thursday's option seller looks to placing a bet that the shares will remain at their current level or even trade higher in the coming months whereby pocketing the premium collected today.
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