Ambarella Inc (AMBA) has surged to a new high, thanks to CNBC's Jim Cramer
Ambarella Inc (NASDAQ:AMBA) puts have been hot for some time now. The semiconductor stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 0.76 -- in the 71st annual percentile.
Short sellers have also taken a shine to AMBA. Nearly 27% of the equity's float is sold short, and would take close to seven sessions to repurchase, at typical daily trading levels.
This bearish bias is holding up today, despite AMBA's 7% jump -- and a
record high of $111.88. Specifically, puts are trading at triple the usual afternoon clip, with
buy-to-open activity detected at the June 105 strike. By purchasing these out-of-the-money contracts, speculators anticipate AMBA will breach $105 by front-month expiration, at the close on Friday, June 19.
These option skeptics may be counting on the fact that AMBA is in overbought territory, with a 14-day Relative Strength Index (RSI) of 80, suggesting a near-term pullback could be in the cards. However, a mass exodus of the weaker bearish hands could result in additional upside.
On the charts, Ambarella Inc (NASDAQ:AMBA) has more than doubled in 2015, currently resting at $110.54. Earlier, CNBC's Jim Cramer said he's keeping an eye on the shares -- along with
these two cybersecurity names -- as the company is a potential drone play.