Schaeffer's Top Stock Picks for '25

NPTN Stock Jumps on Bull Note

Options traders have been bearish on NPTN

Jan 22, 2020 at 10:11 AM
facebook X logo linkedin


NeoPhotonics Corp (NYSE:NPTN) shares are rallying this morning, last seen 8.9% higher at $9.34, thanks to an upgrade out of Needham. The brokerage firm upgraded its view on the transmitter producer to "buy" from "hold," and set an $11 price target, saying among other things that the rollout of 5G technology could help the company this year.

Options activity has actually been exceedingly bearish on NPTN for some time. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 50-day put/call volume ratio of 4.88, which ranks in the 99th annual percentile, showing unusual demand for long puts over calls in the past 10 weeks. This bearish setup is also confirmed by the Schaeffer's put/call open interest ratio (SOIR) of 1.70, which ranks in the 94th annual percentile.

This comes after the equity has made a major move up the charts in the past half-year, adding over 80% in the past six months. More recently, NeoPhotonics has found strong support from the 50-day moving average, a trendline that also contained pullbacks back in September and October. At their current perch, NPTN shares are not far from their Jan. 9 peak of $9.46.

 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?