According to Options and Volatility, shares of Atmel Corporation (NASDAQ: 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.
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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.
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New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.