Is Mobileye NV (MBLY) About to Take Out $50?

Mobileye NV (NYSE:MBLY) calls are flying off the shelves today

by Alex Eppstein

Published on Jun 11, 2015 at 11:30 AM

Over the past couple of weeks, Mobileye NV (NYSE:MBLY) calls have been popular at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, 3.73 calls have been bought to open for every put during that time frame.

It's more of the same today. MBLY calls are changing hands at eight times the typical midday rate, and outnumber puts by a 7-to-1 margin. Some traders may be wagering on the shares to topple the round-number $50 mark over the short term, with potential buy-to-open activity detected at the June and July 50 calls.

It won't take much to get to the half-century mark. MBLY has jumped 3.5% today to trade at $49.50, bringing its year-to-date lead a hair north of 22%. However, it's worth noting the stock hasn't traded above $50 since mid-November. As such, delta on the June and July calls are 0.44 or 0.48, respectively -- suggesting their chances of expiring in the money are less than 1-in-2.

No matter what happens, these short-term traders can rest easy knowing they paid relatively muted prices for their bets. Mobileye NV's (NYSE:MBLY) 30-day at-the-money implied volatility hit an annual low of 32.6% earlier.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Billion-Dollar AT&T Loan Boosts Stock
T announced at $5.5 billion term-loan agreement today
SHOP Stock Fails to Shake Off Downgrade
Raymond James downgraded Shopify to "market perform" from "outperform"
The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.