Bulls stick with NXP Semiconductors


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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 phones.

NXPI's fourth-quarter report is scheduled for after the bell on Feb. 9.

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 Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing , Options

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