Dan Nathan Sees Unusual Options Activity In Cypress Semiconductor Corporation

Dan Nathan spoke on

about increased options activity in

on Monday. He noticed that the options open interest doubled in the name and one big trade caught his attention. When the stock was trading at $9.50, there was a buyer of 31,000 contracts of the June 11/13 call spread for $0.33. The trade breaks even at $11.33 or 17.65 percent higher from the current stock price. If the stock moves to $13 or higher the trader can make a maximal profit of $1.67. Nathan thinks that the trader is leveraging a long stock position because he might be expecting that someone could acquire the company.