QRVO became the latest Apple supplier to issue a tepid outlook
Qorvo Inc (NASDAQ:QRVO) is the latest Apple supplier to slash its third-quarter forecast for profit and revenue, resulting in a price-target cut to $75 from $80 at Cowen earlier today. But while QRVO earlier fell to an annual low of $61, it was last seen slightly higher at $63.75, and activity in the options pits today points to a bullish bias.
At last check, nearly 4,200 QRVO options have changed hands-- three times what's typically seen at this point in the day, with volume pacing for the 95th percentile of its annual range. Leading the charge is the January 2019 65-strike call, where it appears new positions are being opened.
This call bias is nothing new, though, despite limited absolute volume. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows 1,115 calls were bought to open in the last 10 days, compared to just 671 puts.
On the charts, it's been an ugly channel of lower lows and highs for QRVO since it briefly crossed the $86 level back in early August. The stock is heading towards four straight monthly losses, currently sporting a 13.1% decline for November.
