Shares of KLA-Tencor Corporation (KLAC) are trading lower on the session by 0.40%, at $46.94. The stock has consolidating for the past six weeks following a slide lower in mid-September.
With a potential reverse head and shoulders pattern forming, one trader is making a volatility play today. A short while ago the November $48.00 call was sold 2,550 times, on the bid, for $0.85. This trade coincided with a block of 96,900 shares that traded below the spread for $46.83.
Note that the Nov calls were originally part of a 3k block traded at $0.85; this was since canceled and replaced with the above-mentioned block.
30-day implied volatility is rising 2.2% today to 31.31%, while 10-day historical volatility is registering 26.14%. At $0.85, the Nov $48 calls were sold at 31% vol.
KLA-Tencor Corporation is engaged in the design, manufacture and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries.