Shares of the Market Vectors Semiconductor ETF (SMH) are trading lower on the session by 0.45%, at $31.07. The ETF has been moving largely lower over the past three months and is now trading below the 50-day and 200-day moving averages.
Call spreads are active on the name today, pushing overall call volume to 22x normal volume.
Shortly after the opening bell the May 2013 $27/31 call spread traded 1,244 times, mid spread, for $2.81. While it was not distinguishable whether this was a bullish or bearish spread at first, it was confirmed to be bullish given the activity that followed.
The May13 $27/31 call spread was then purchased 5,043 times for a net debit of $2.76-2.80 and then purchased 1,167 times for $2.80.
With total volume on the strikes of 8,580 contracts, this is clearly new positioning; open interest is 3 and 202 contracts, respectively.
30-day implied volatility is off 1.1% today to 23.18%; 10-day historical volatility is registering 20.61%. ?
The Market Vectors Semiconductor ETF seeks to replicate as closely as possible before fees and expenses the price and yield performance of the Market Vectors US Listed Semiconductor 25 Index.