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BofA-Merrill Lynch named Himax Technologies, Inc. (ADR) (HIMX) a 'top pick' for 2015
Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) shares jumped 10% yesterday after being named a "top pick" for 2015 by BofA-Merrill Lynch, which also upped its price target to $12.50. Options activity kicked into high gear, too, with calls crossing at more than double the typical daily rate.
HIMX's most active strike was the in-the-money March 8 call, where 943 contracts changed hands. It appears a number of these positions were bought to open, as speculators wagered on additional upside through the close on Friday, March 20 -- when the back-month options expire.
Yesterday's call buying merely echoes the prevailing trend witnessed in HIMX's options pits. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open more than 20 calls for every put. The resultant call/put volume ratio of 20.30 ranks in the 86th percentile of its annual range.
Himax Technologies, Inc. (NASDAQ:HIMX) has had a nice run on the charts recently. During the last 40 sessions, the stock has outperformed the broader S&P 500 Index (SPX) by 28.1 percentage points -- perhaps explaining the recent preference for long calls. This morning, however, the shares are down 1.5% at $8.64 on broad-market headwinds.