Big Endorsement Gets Himax Technologies, Inc. (HIMX) Bulls Going

BofA-Merrill Lynch named Himax Technologies, Inc. (ADR) (HIMX) a 'top pick' for 2015

Digital Content Group
Jan 27, 2015 at 10:27 AM
facebook twitter linkedin

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.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners