Estee Lauder Companies Inc (EL) Options Rosy on Stock’s Performance Near Term

Avago Technologies Ltd (NASDAQ:AVGO) – Put options changing hands on semiconductor devices maker, Avago Technologies, in the early going this morning look for the price of the underlying to pull back to the lowest level in several weeks. Shares in AVGO are up 0.15% on the day at $34.37 as of 12:40 p.m. ET. Overall options volume on Avago jumped to more than 8 times the stock’s average daily volume and the put/call ratio on the stock surged to more than 160 after one or more traders snapped up May expiry puts this morning. The May $32.5 strike put traded more than 4,200 times during the first half of the session against open interest of just 43 contracts, with the bulk of the volume purchased at an average premium of $0.70 each. The bearish contracts make money if shares in Avago Technologies decline 7.5% from the current price of $34.37 to breach the average breakeven point on the downside at $31.80 by May expiration. The $32.5 strike put options expire the week prior to Avago’s second-quarter earnings report seven weeks from now.

Caitlin Duffy
Equity Options Analyst

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