Synaptics, Incorporated's (SYNA) all-time high isn't enough for today's option bulls
As Synaptics, Incorporated (NASDAQ:SYNA) moves higher on the charts, call buying has been picking up, with the contracts crossing at three times the expected intraday pace. What's more, each of SYNA's 10 most active contracts are calls, with the July 100 strike leading the way. Data suggests traders are buying to open these contracts, betting on the shares to topple the century mark -- which would mark an all-time high -- by the close on Friday, July 17, when the contracts expire.
This is just more of the same from the equity's option traders. Over 11 calls have been bought to open for each put during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The resultant 10-day call/put volume ratio of 11.31 sits just 5 percentage points from an annual bullish extreme.
Supporting this is SYNA's Schaeffer's put/call open interest ratio (SOIR), which at 0.46 reveals call open interest doubles put open interest among contracts expiring within three months or less. Additionally, this reading is lower than 96% of all similar readings from the past 12 months, pointing to a much stronger-than-usual preference for calls over puts.
It's no surprise to see this bullish betting on Synaptics, Incorporated (NASDAQ:SYNA). So far in 2015, the shares have tacked on 40.6% to trade at $96.78, touching a record peak of $97.57 earlier today, after Mizuho started the equity with a "buy" rating and a $115 price target.