A Reversal for Cavium Inc Is Not Near. Professional Options Traders Are Bearish

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In today’s session Cavium Inc (CAVM) recorded an unusually high (606) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2015 put, expecting serious CAVM decrease. With 606 contracts traded and 196 open interest for the Dec, 15 contract, it seems this is a quite bearish bet. The option with symbol: CAVM151218P00060000 closed last at: $1.1 or 100% up. The stock decreased 8.32% or $5.86 during the last trading session, hitting $64.59. About 2.50M shares traded hands or 260.10% up from the average. Cavium Inc (NASDAQ:CAVM) has declined 11.71% since April 22, 2015 and is downtrending. It has underperformed by 11.33% the S&P500.

Out of 7 analysts covering Cavium Networks Inc. (NASDAQ:CAVM), 4 rate it “Buy”, 1 “Sell”, while 2 “Hold”. This means 57% are positive. Cavium Networks Inc. was the topic in 14 analyst reports since July 31, 2015 according to StockzIntelligence Inc.

Cavium, Inc. is a provider of semiconductor processors, which enable processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications. The company has a market cap of $3.94 billion. The Company’s products include OCTEON, OCTEON Plus, OCTEON Fusion, OCTEON XL, LiquidIO, NITROX, NEURON Search and PureVu. It currently has negative earnings. The Company’s OCTEON, OCTEON Plus, OCTEON II and OCTEON III Multi-core MIPS64 processor families provide data and security processing.

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