Option Bulls Make a Beeline Toward Synaptics, Incorporated (SYNA)

Synaptics, Incorporated (NASDAQ:SYNA) is no longer in takeover talks with a Chinese buyer group

Jun 7, 2016 at 3:24 PM
facebook X logo linkedin


While this tech stock is popping on rumors of a potential Silicon Valley buyout, Synaptics, Incorporated (NASDAQ:SYNA) is stumbling on news the company is no longer in takeover talks with a Chinese buyer group. At last check, SYNA stock is down 1.4% at $65.62. Nevertheless, calls are crossing at two times the average intraday rate, and are outpacing puts by a more than 3-to-1 margin.

Today's accelerated call activity is nothing new for SYNA, though. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 38.08 ranks just 1 percentage point from a 52-week peak. In other words, calls have been bought to open over puts at a near-annual-high clip.

Additionally, SYNA sports a Schaeffer's put/call open interest ratio (SOIR) of 0.40. Not only does this show that calls easily outweigh puts among options expiring in three months or less, but it rests lower than 88% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-heavy now than usual toward SYNA.

Drilling down, peak call open interest of 5,567 contracts is found at the June 75 call. According to the ISE, the majority of the action has been of the buy-to-open kind in recent weeks, meaning call buyers are betting on SYNA to topple $75 before the front-month options expire at next Friday's close. 

Technically, the stock hasn't seen the north side of $75 since a third-quarter revenue miss in late April sent the shares tumbling nearly 12% in the subsequent session -- and into the red on a year-to-date basis. Regardless of where Synaptics, Incorporated (NASDAQ:SYNA) settles at the end of next week, though, call buyers can rest easy knowing their losses are limited.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI