AAL

NXP Semiconductors NV (NXPI) Skeptics Call It a Day

NXP Semiconductors NV's December 77.50 call was bought to close on Friday

Dec 15, 2014 at 10:48 AM
facebook X logo linkedin


In mid-November, NXP Semiconductors NV (NASDAQ:NXPI) was trading near $74.70 -- record-high territory at the time. As such, option traders initiated short calls at the equity's December 77.50 strike on Nov. 11, expecting the stock to stall near this notable milestone.

Instead, NXPI went on to rally in the subsequent weeks, topping out at an all-time peak of $78.34 on Nov. 28. Recently, the shares have been consolidating in the $72.50-to-$73 region -- with NXPI last seen at $72.72. Against this backdrop, a number of the call sellers on Friday bought to close their December 77.50 positions to guard against a quick rebound for the semiconductor stock through week's end, when front-month options expire.

Elsewhere on the sentiment front, short sellers have been abandoning their bearish positions in droves, following the stock's trek into uncharted territory. Over the past two reporting periods, specifically, short interest plunged 46.1%, and now accounts for just 1.3% of the equity's available float. What's more, it would take less than one session to cover these shorted shares, at NXP Semiconductors NV's (NASDAQ:NXPI) average daily pace of trading.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.