Traders Expect NXP Semiconductors N.V. (NXPI) to Bounce Back

NXP Semiconductors NV (NXPI) options traded at a breakneck speed yesterday

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Published on Mar 27, 2015 at 9:25 AM
Updated on Apr 20, 2015 at 5:32 PM

On Thursday, semiconductor stocks -- including NXP Semiconductors NV (NASDAQ:NXPI) -- had another rough day. Shares of the Netherlands-based company dropped 2.6% -- and below the $100 century mark -- to close at $97.50. However, options traders kept the faith.

Looking more closely at NXPI's options pits, volume swelled to almost triple the daily norm yesterday, and calls nearly quadrupled puts. The most active strike was the May 105 call, which saw buy-to-open activity as traders rolled the dice on the stock toppling $105 by the close on Friday, May 15, when back-month options expire.

This optimism is reflected among the brokerage crowd. In fact, 11 of 12 covering analyst have given NXPI a "strong buy" rating, compared to just one "hold" and not a single "sell."

It's no wonder, either. NXP Semiconductors NV (NASDAQ:NXPI) has been a technical marvel, soaring more than 70% over the last 12 months. In fact, the security touched a record peak of $108.50 on Monday. Ahead of the bell, the shares are up 2%.


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