One investor expects NXP Semiconductors to rally.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 1,400 February 20 calls for $0.42. Some 2,000 January
17.50 calls were sold at the same time for $0.26 to $0.32.
Volume was below open interest in the Januarys but not the February
options, which suggests that an existing long position was rolled
from one month to the other. If true, that would give the investor
more time to profit from upside in the shares.
Given that he or she sold more contracts at a lower price than they
bought, the transaction had a net cost of about zero.
NXPI fell 2.50 percent to $17.16 on Friday and has been moving
sideways since the market crashed over the summer. Its last two
earnings reports missed expectations, though some investors are
hoping for better results this year because the company's Near
Field Communications (NFC) technology is expected to benefit from
Google Wallet. The initiative will link credit cards with cell
NXPI's fourth-quarter report is scheduled for after the bell on
Overall option volume in the name was 4 times greater than average
on Friday, with calls outnumbering puts by 16 to 1, according to
the Heat Seeker.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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