NXP Semiconductors NV (NXPI) Attracts Unusually Large Call Buy

We’re all about the large and unusual call buys as an indicator of good news to come. So, clearly there is some good news coming in NXP Semiconductors NV (NXPI) in the next little while.

A trader just bought 3,800 + NXPI October $65 calls, almost all of it at the ask, around $2.64.  That’s a nice sized “bet” of just over $1 Million.  It’s unusual because of the size of the trade, but also unusual given the out of the money nature of the trade, AND the fact that it was bought on weakness.  Right now NXPI is down 99 cents to $62.01 on much higher volume than average.

NXPI already released earnings on July 23, so we know it’s not a play on leaked earnings.

This is a bit of a head scratcher.  There’s likely only two other catalysts, one being a buyout.  No rumors swirling there.  The second being an analyst upgrade and/or price target increase.  That would have to be one doozy of an upgrade as the stock is already rated a BUY by 19 analysts, and it has a consensus price target of $76.05 already, so not much room for a surprise price target increase.

So there doesn’t seem to be any major catalysts coming to explain this huge call bet in NXP Semiconductors.  Yet there it is.

nxpi logoIt’s possible some sort of big contract award could be announced, but again it would have to one doozy of a contract to have any big, quick effect on the stock price.

Either way, we like these big call buys in foreign stocks so we’ll jump in with a little copycat bet in this Netherlands based company.


Happy trading.