Traders were buying LRCX puts before the event
The broader stock market is under pressure today, but the shares of semiconductor processing equipment specialist Lam Research Corporation (NASDAQ:LRCX) are outperforming in a big way thanks to the company's earnings release last evening. LRCX stock is trading 6.7% higher at $318.41, already tapping a fresh record peak of $319, thanks to an earnings beat and strong outlook.
This brings the shares' one-year gain to almost 86%, and this recent outperformance comes despite recent rockiness in the semiconductor space. This could be why some options traders were showing caution ahead of the event. Specifically, the 10-day put/call volume ratio of 1.33 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 83rd annual percentile, showing stronger-than-usual demand for long puts. At the same time, the largest increase in open interest on the put side during this time was at the now-expired weekly 1/24 300- and 302.50-strike puts.
Elsewhere, LRCX received a flurry of bullish analyst notes this morning. Of the handful of price-target hikes that have come through, the highest was $400 from Susquehanna. There's still room for more positive analyst attention for the stock, however, since eight brokerage firms had "hold" or worse ratings in place today, so watch for upgrades on Lam Research going forward.