Apple Supplier Gets Much-Needed Bump Before Earnings

OLED stock has been crushed in recent months

Managing Editor
May 2, 2018 at 10:11 AM
facebook X logo linkedin


OLED screen manufacturer and iPhone X supplier Universal Display Corporation (NASDAQ:OLED) is trading higher this morning, thanks to Apple's upbeat earnings. At last glance, Universal Display stock was up 1.8% at $91.40, even after Deutsche Bank slashed its price target to $135 from $170. Of course, this is just a drop in the bucket for OLED, which has been crushed since peaking at $209 back on Jan. 19, hitting an annual low of $86.85 last week.

On the surface, options traders have been quite bullish toward the stock. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security with a 10-day call/put volume ratio of 2.38, indicating that calls have been purchased over puts at a faster-than-usual clip over the past two weeks.

But some of this activity could be from short sellers hedging against a sharp upside move, since short interest represents over 12% of OLED's float. In just the last two reporting periods, the number of shares sold short increased by 22.1%. Based on average daily volumes, it'd take short sellers a week to cover their positions.

With earnings due out after the close tomorrow, May 3, it's also worth noting that the tech concern sports a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100. This means the equity has tended to register bigger price swings than its options premiums have priced in over the past 12 months. Ahead of tomorrow's event, the options market is pricing in an 18.4% swing -- almost double the average OLED post-earnings move of 9.3% from the past two years.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI