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