by Houghton and Atkeson 08/28/08
The flow for Integrated Device Technology (IDTI) has been active lately.
At the end of May, IDTI's CFO left the company to join Marvell (MRVL). On this news, a couple of leading investment banks downgraded the stock.
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Then, in late July, the flow changed course with the company reporting better-than-expected results and guidance for the year.
With the Monday downdraft in the market and with the stock dropping from about $11 to about $10, option investors took this opportunity to start building positions in the IDTI Oct 10 (ITQJB) and IDTI Nov 10 Calls (ITQKB).
For the week, investors have purchased more than 10,000 IDTI 10 Calls and call open interest now stands at more than 16,000 contracts. Total put open interest is currently about 5,000 contracts.
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