Traders hope the tide has finally turned for Universal Display.
The maker of screens for smartphones and flat-panel monitors
announced better-than-expected results yesterday afternoon,
breaking a string of at least three consecutive weak reports.
Shares gapped higher and are currently up 14 percent to $33.52 in
late morning trading.
optionMONSTER's Heat Seeker monitoring program also shows bullish
upside activity, with 1,500 September 32 calls purchased against
open interest of just 490 contracts. Most of the large blocks
priced for $3.20 to $3.90.
fix where shares can be bought, letting investors cheaply position
for rallies. The contracts can generate significant leverage
relative to the underlying equity, as well. (See our
OLED had a massive run from $10 to $60 between February 2010 and
April 2011 but has been swinging widely in a range since. Today's
gap higher brings it back to the same $34 level where it peaked
earlier in the year, which could make some investors nervous about
a pullback but also hopeful of a big rally is resistance is broken.
Overall option volume is more than quadruple the daily average so
far today. Calls account for more than three-quarters of the total.
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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.