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

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

Jun 11, 2015 at 11:30 AM
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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.
 
 

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