One big investor is looking for another leg higher in Himax
Technologies, which has already more than quadrupled in the last
optionMONSTER's Heat Seeker tracking program detected the purchase
of 2,000 January 15 calls for $2.84 and the sale of an equal number
of January 25 calls for $0.94 yesterday. Volume was below open
interest in the 15s, so there are two possible explanations for the
The more likely one is that both halves of the trade were new
opening positions, in which case this is a
bullish vertical spread
with the potential to earn 426 percent if the stock closes at $25
or higher upon expiration 11 months from now.
Alternatively, the trader may own shares in the maker of
liquid-crystal displays and had sold the January 15s as part of a
. If that's the case, he or she rolled those calls up to the 25
strike, getting the right to collect an additional $10 on the
Either way, the trader paid $1.90 and is looking for a move above
$15. (See our
HIMX rose 3.9 percent to $13.85 yesterday and has spent the last
two months consolidating in its current range. The shares have now
returned to their 50-day moving average, which could make some
chart watchers expect more gains.
Our researchLAB momentum scanners repeatedly flagged the stock
early last year, but it became more widely known after Google
bought a 6.3 percent stake in the company in July.
Total option volume in Himax yesterday was twice its daily average
for the last month, according to the Heat Seeker. Overall calls
outnumbered puts by a bullish 3-to-1 ratio.