Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Pixelworks, Inc. (PXLW) Option Volume Pops

Pixelworks, Inc. call options are in high demand, while short sellers hit the bricks

by 7/9/2014 1:21 PM
Stocks quoted in this article:

Option volume on Pixelworks, Inc. (NASDAQ:PXLW) has skyrocketed today, with more than 5,700 contracts changing hands so far -- easily outstripping the stock's average daily volume of 577 calls and puts. With demand soaring for PXLW options, 30-day at-the-money implied volatility has surged 24.1% to 90.4%.

The center of attention this afternoon is the August 10 call, where 1,794 contracts have traded. The majority of these out-of-the-money calls have crossed the tape at the ask price, and today's volume at this strike is outnumbering open interest of 1,569 -- suggesting that options traders are buying new bullish bets on PXLW.

This sudden interest in PXLW options coincides with a big jump for the stock, which is up 16% this afternoon to trade at $8.82. With the company's latest 10-Q filing revealing it has landed none other than Apple Inc. (NASDAQ:AAPL) as a new customer, shares of the semiconductor stock are among the biggest gainers on the Nasdaq today. Earlier in the session, the shares peaked at a seven-year best of $9.19.

Today's breakout is likely attributable, in part, to a short-squeeze rally. Even though Pixelworks, Inc. (NASDAQ:PXLW) boasts an impressive year-to-date gain of more than 80%, bears have sold short a substantial 13.9% of the stock's float. In fact, some of today's call-buying activity could be driven by short sellers, as bullish options can be used to hedge shorted shares against a continued rally.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.