The Merrill Lynch/Market Vectors Semiconductors ETF (SMH) is flat at 45.10 today.? SMH is near the top of the 52 week range.

Today paper traded 14500 SMH Aug 50 calls for.38? The ADV is 2752 contracts.? The OI is over 22k contracts.

The volume went up in 1 huge block. Calls on the SMH Aug 47 strike went up for 1.15 lifting the offer at nearly the same time.? The call buyers are pushing up the IV slightly and this could be a short covering trade.? Short covering at this level makes little sense with the underlier strike still a good ways away and real premium in these options.? Check the OI in case this is more of the same volume tomorrow.? This is really looking like more of a run up for the Semi?s

30-day implied volatility is 19%. ? 10-day implied volatility is 25%.? 30 day implied volatility is trading below the 10 Day Historical volatility.

Merrill Lynch & Co. Inc. Semiconductors HOLDRs Trust, formerly The Market Vectors Semiconductor ETF, seeks to replicate the price and yield performance of the Market Vectors the United States Listed Semiconductor 25 Index (MVSMHTR).?