AAL

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.

 

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.