Semiconductor Stock Soars After Strong Quarterly Report

Options volume is pacing for the top percentile of its annual range

Assistant Editor
Sep 1, 2021 at 10:18 AM
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Semiconductor design stock Ambarella Inc (NASDAQ:AMBA) is surging today, up 17.4% at $121.56, after the company reported upbeat second-quarter results and strong third-quarter guidance. Security and automotive cameras were behind a good portion of the profits, and no fewer than four analysts raised their price targets after the event, including Craig-Hallum to $170 from $150. 

Today's bull gap has the stock breaking past pressure at the $106 level, which has kept a lid on shares since early April. Now trading at its highest levels since March, AMBA is up 32.2% year-to-date. 

Of the 14 analysts in coverage, nine carry a "buy" or better rating on Ambarella stock, with four at a "hold," and one with a "sell." Meanwhile, short interest represents 4.2% of the stock's available float, and would take over four days to cover, at the stock's average pace of trading. 

Options traders are swarming the security this morning, with options volume running at 37 times the intraday average, and pacing for the top percentile of its annual range. So far, 6,665 calls and 3,339 puts have crossed the tape. The weekly 9/3 125-strike call is the most popular, with new positions being opened. 

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