Atmel Corporation (ATML) Unusual Call Options Trade Update

On July 23 we wrote about a large call buyer hitting Atmel Corporation (ATML) calls that day.  The trader had bought 8,041 of the August $9.00 ATML calls paying 50 cents for those calls.

On July 23 Atmel Corporation (ATML) was trading at $8.97.  Today is trading at $8.50 up 13 cents, after fading lower since the that large call buy on the 23rd.  At this moment, ATML August $9 calls are bidding 20 cents, so the trader is down more than 50 percent on is “bet”, at least on paper. So was this a losing trade?  Not yet.

Atmel Corporation (ATML) is scheduled to report earnings on August 6th, after the close.  There’s been no upgrades since the 23rd, so that could still be a possibility too, but we think this unusual trade was based on some positive earnings numbers leaking to the lucky few.

That initial trader plopped down $400,000 for a reason. Likely an earnings related reason.  While we still don’t like earnings plays, we are jumping in here at 25 cents, in a small way.  It’s always nice to copy cat the insider money trades for far less than they paid.

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This is not a recommendation, do your own DD in the company and decide for yourself whether this is right for you.