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Omnivision bull steps in on pullback

Omnivision Technologies is bouncing near the bottom of its recent range, and one investor is getting long.

optionMONSTER's Heat Seeker tracking system detected the purchase of 2,500 September 32 calls for $1.50 and the sale of an equal number of September 29 puts for $2.10. Volume was above open interest in both strikes.

The trade resulted in a credit of $0.60 and will make further profits if the tech stock pushes toward or above $32. Like owning shares, it also stands to lose money to the downside.

OVTI is up 0.41 percent to $29.36 in morning trading and has been consolidating between $28 and $35 since late February. It's now making a slightly higher low than its bottom in June and is attempting to hold support at its 200-day moving average. Some chart watchers may consider this evidence it remains in a bullish uptrend.

The company makes imaging chips and is a major supplier for Apple's mobile devices. Its last earnings report on May 26 beat expectations, but guidance was weak. The date of the next release hasn't been announced, but it will probably be later this month.

Overall option volume in OVTI is about twice the average amount so far today, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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