High hopes for NXP Semi's earnings

By David Russell,

Shutterstock photo

NXP Semiconductors issues results on Thursday morning, and the bulls are looking for a pop.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 5,500 September 20 calls in the Dutch chip maker, most of which priced for $2.80. Open interest in the strike was just 6 contracts when the session began.

NXPI moved immediately and ended Friday's session up 4.70 percent to $22.74. The stock more than doubled between late 2010 and April, then rolled over and proceeded to lose about one-third of its value into last week.

While semiconductor stocks have faced pricing concerns and economic worries, companies including Advanced Micro Devices and Skyworks Solutions exploded higher on strong reports and outlooks. That helped brighten the picture after lackluster quarter from sector leader Intel.

Overall option volume in NXPI was 22 times greater than average, with calls outnumbering puts by more than 6 to 1.

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
Referenced Stocks: NXPI

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