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Himax Technologies, Inc. (ADR) (HIMX) calls have once again emerged as the options of choice
Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) is soaring today -- perhaps getting a boost from
a generally bullish bias in Asian stocks. Regardless of the reason, the shares were last seen up 5.7% at $6.68, and on pace to close north of their 50-day moving average for the first time since March 13. The positive price action has sparked a rush toward HIMX calls, with the contracts outpacing puts by 6-to-1 ratio.
Most active is the equity's September 7 call, where it look as if some of the activity is of the buy-to-open kind -- a theory echoed by data from the International Securities Exchange (ISE). If traders are indeed purchasing new positions here, the goal is for HIMX to topple $7 by the close on Friday, Sept. 18 -- when the series expires. Amid today's pop, delta on the call has jumped to 0.37 from 0.25 at last night's close, signaling an increased probability of an in-the-money finish.
Today's penchant for calls over puts just
mirrors the broader trend seen in the security's options pits. At the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 9,295 calls versus just 140 puts over the past two weeks. What's more, the resultant call/put volume ratio of 66.39 rests just 8 percentage points from a 52-week peak.
Meanwhile, now appears to be an opportune time to purchase near-term options on Himax Technologies, Inc. (NASDAQ:HIMX). Not only does the stock's Schaeffer's Volatility Index (SVI) of 47% sit below 98% of all similar readings taken in the past year, but its 30-day at-the-money implied volatility hit a 52-week low earlier. Simply stated, the security's short-term options are currently priced at attractive levels, historically speaking.