Digging deeper, GTAT's most active option is the weekly 7/11 17-strike call, where close to 1,500 contracts have changed hands. The majority appear to have been sold to open, as speculators are wagering against the shares toppling the 17 strike through the end of the week, when the weekly calls expire. If this happens, the contracts will expire worthless, and the sellers will retain the initial premium collected as their maximum potential reward. However, if GTAT rallies past $17 by week's end, the call writers will be at risk of assignment and potentially unlimited losses.
On the charts this afternoon, GT Advanced Technologies Inc (NASDAQ:GTAT) is bucking the broad-market trend lower, up over 2% at $16.84. As such, delta on the weekly calls has increased to 0.46 from 0.37 at yesterday's close. Nevertheless, GTAT remains on the short-sale restricted list. The stock landed there Monday, after a round of bearish brokerage notes -- including its removal from UBS' key call list (and downgrade to "neutral" from "buy") -- resulted in a gap lower and a nearly 16% single-session loss.
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