NXP Semiconductors is back on the bulls' radar.
Our Heat Seeker tracking system detected the purchase of more than
1,700 August 22.50 calls, most of which priced for $1.40. Volume
was more than triple the previous open interest, indicating that
these are new positions.
Those
long calls
lock in the price investors must pay to buy shares in the company,
whose chips are used in wide array of applications, including
automotive, wireless, and lighting products. They can generate
significant leverage in the event of a rally but will expire
worthless if the stock doesn't move. (See our
Education
section)
NXPI fell 0.94 percent to $22.13 yesterday. The stock rallied from
about $15 to $27 between January and late March, then pulled back
below $20 and has been working its way higher since. Investors have
recently focused on use of the company's technology in so-called
near-field communications (NFC), which will let people charge their
credit cards by tapping their cell phones.
The last earnings report in April was strong as management issued
bullish guidance. Shares also gapped higher with no clear headline
on June 29 and have been holding their ground since. The next set
of quarterly results comes out before the bell on July 24.
(A version of this post appeared on
InsideOptions Pro
yesterday.)
