by Houghton and Atkeson 06/26/08
In this very strong down market move, options investors are buying over 5,000 of the August call options at the $12.50 (TUDHV) and $15 (TUDHC) strike prices in NetGear (NTGR).
On days when almost every investor we speak with believes the market is only going down, it is worth taking note of some of the counter-market-trend positioning going on behind the scenes.
NTGR is trading at a 52-week low and is down more than 60% year-to-date. In working on the equation "buy low, sell high," options investors are giving us a signal that this is buying low in NTGR.
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