Weekend Review: Options Flag in FormFactor (FORM)

Posted in Options 
September 19th, 2009

FormFactor Inc. (NASDAQ: FORM) is not a highly active stock by almost any measure for almost any stock exchange.  It is also not an active stock in the realm of options trading.  In our weekend review, this one stood out handily for a stock that has rarely, if ever, crossed our path for big weekend stock and options trading screens.     Yet we saw over 11,000 contracts trade hands on Friday, and it was sneaky because the trades were one-sided and all the way out to APRIL-2010 in the CALL options. Here are the trades in the APRIL-2010 CALLS:

CALL$    Volume Op.Int.
20.00    6,880     25
22.50      125        25
25.00    5,592     96

What is odd is that those two trades were bigger than the open interest of all the seen CALL options from now until then combined.  That even includes the SEPT-2009 options which expired.   This stock closed down 0.45% at $24.34 on 684,832 shares.  That is barely above average of about 585,000 shares.  Its market cap is $1.2 billion and the 52-week trading range is $11.36 to $26.08.

JON C. OGG

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