Call selling see limited upside in Applied Materials.
A block of 29,789 July 23 calls was sold for $0.42, just under the listed bid price at the time, according to optionMONSTER systems. Open interest in the strike was 6,047 contracts before the trade appeared, showing that it is a new position.
The calls weren’t tied to any trading in the underlying shares identified by our systems today, so they could have been sold naked with an initial bearish bias. But it is more likely that they were sold against an existing stock position in a covered-call strategy, which would be bullish up to the $23 strike price but not beyond.
— Option Monster