Semiconductor Stock Soars on Quarterly Results, Forecast

Wolfspeed Inc (NYSE:WOLF) is soaring today, up 25.7% at $107.66 at last glance, after the semiconductor concern posted narrower-than-expected fiscal fourth-quarter losses per share, a revenue beat, and a strong current-quarter forecast. No fewer than seven analysts raised their price targets after the event, including Wells Fargo to $125 from $100. The firm stated that it views WOLF as "one of the purest ways in the chip sector to play the accelerating market transition to pure battery electric automotive power trains." 

Now trading at its highest level since April, today's pop has Wolfspeed stock breaking above pressure at the $93 level, which had kept a cap on gains this month, as well as several long-term moving averages. Only slightly below its year-to-date breakeven, the security is currently up 69% quarter-to-date. 

WOLF isn't typically extremely popular in the options pits, so the 9,424 calls and 6132 puts exchanged so far are 27 times the average intraday volume. The August 90 and 100 calls are the most active, with new positions being bought to open at the August 110 call. 

It's also worth noting short interest represents 8.1% of the stock's available float. It would take nearly six days to buy back these bearish bets, at Wolfspeed stock's average pace of trading.