NXP Semiconductor has been in a world of hurt, but now the bulls
are coming back.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of more than 3,000 February 15 calls for $1.80 to $1.95 against
open interest of just 8 contracts. That locks in the entry price
investors must pay to buy the stock, so the calls can double or
triple could double or triple from even a modest move in the
NXPI rallied as the trades hit and continued higher throughout
yesterday's session, ending with a 7.05 percent gain at $15.80.
It's had a rough ride since the spring, losing more than half its
value between April and August. The last two earnings reports
missed estimates because of higher costs and uncertainties
resulting from the European debt crisis.
Some chart watchers may think that NXPI is due for a bounce because
it's back down to the same $14 level where it went public in August
2010. The Dutch company also expects growth from the Google Wallet
initiative, which will allow cell phones to be linked to credit
cards and be used as payment devices.
Overall option volume in NXPI was more than 5 times greater than
average in yesterday's session, with calls outnumbering puts by 28
(A version of this post appeared on
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