Himax Technologies, Inc. (HIMX) is the ADR for the Taiwanese semiconductor and integrated circuit manufacturer. At the time of this post, (2:50PM CST), HIMX is currently trading at 7.89, up 4.09% on the day. The stock is currently still trading well within the lower portion of its 52 week trading range of 5.70-16.15, though it has managed to reclaim some if its losses after holding firm off the 6.00 support level in late July.
Earlier this morning at approximately 11:21AM CST, OptionHacker detected and flagged some unusually bullish options activity in HIMX just as the stock began to break through 7.80 resistance and surge higher intraday. A large buyer of 4,461 of the March ’15 8.0 strike calls stepped in and lifted the offer across multiple exchanges for 0.65, a trade that went off against an open interest in the strike of just 2,231 contracts. With an initial cash outlay of approximately $289,975 before commissions, this opening transaction reflects a large trader positioning for continued upside in HIMX going into the March monthly options expiration 38 days away. While the stock still remains technically weak on a daily chart, this trader is betting on a continued move higher in HIMX to at least 8.65 by March 20th 2015 in order to break even on this long position (not including commission costs). Accordingly, we will be monitoring this stock closely for continued upside headed into the next month of trading.
Trade: A trader bought 4,461 HIMX Mar 8 Calls for $0.65
Risk: $65 per 1 lot
Reward: Unlimited
Breakeven: $8.65
Regards
Andrew Keene
KeeneOnTheMarket.com
