BUY, SELL, HOLD (2)

Bulls Blitz Synaptics Incorporated (SYNA) Amid Record High

Synaptics, Incorporated (NASDAQ:SYNA) call players are active, after the stock hit a record high

May 18, 2015 at 1:15 PM
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Similar to the broader equities market, Synaptics, Incorporated (NASDAQ:SYNA) is lingering in record-high waters today. Specifically, the stock topped out at an all-time peak of $94.05 earlier -- which some attribute to a round of short-covering -- and was last seen up 4% at $93.84. In the options pits, call volume has soared to three times what's typically seen at this point in the day, with a number of traders gambling on more upside in the near term.

Drilling down, SYNA's weekly 5/22 95-strike and 6/26 96-strike calls have received notable attention, and it seems as if new positions are being purchased at each short-term option. If traders are indeed initiating fresh long positions here, the goal is for SYNA to extend today's rally -- and move deeper into uncharted territory -- by the respective expiration dates of this Friday's close and the close on Friday, June 26.

Today's accelerated call activity is just more of the same in SYNA's options arena. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 5.48 rests in the 80th percentile of its annual range.

On the charts, Synaptics, Incorporated (NASDAQ:SYNA) has added an impressive 61% since notching its Jan. 16 year-to-date low of $58.22, thanks to several critical bounces off its 50-day moving average. As touched upon, short sellers have been hitting the bricks amid this uptrend. Over the past two reporting periods, short interest dropped 18.2%, but still accounts for a healthy 9.9% of SYNA's available float -- representing four sessions' worth of pent-up buying demand, at average trading levels.
 

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