Markets

Is there more upside in Himax?

Himax Technologies has been rallying since the market crashed, and traders think the move will continue into next year.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,400 March 8 calls for $1.30. Volume eclipsed previous open interest of 160 contracts, which indicates new money was put to work.

Long calls lock in the price where investors can buy a stock, allowing them to profit from a rally with limited risk. (See our Education section)

HIMX rose 2.14 percent to $8.10 yesterday and is up 33 percent in the last month. The semiconductor stock rallied after announcing quarterly results on Aug. 7 and has been holding the same $6 support level where it bounced in 2014 and last May. Yesterday's activity reflects a belief there's greater upside over the long term.

Total option volume was 6 times greater than average in the session, with calls outnumbering puts by more than 70 to 1.

There was also bullish activity on Aug. 31 , when January 8 calls were bought for $0.70. Those same contracts have now appreciated about 50 percent 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.


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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