Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) Supplier NXP Semiconductors NV (NXPI) Could Move By 7% In The Options Market

Apple Inc. (NASDAQ:AAPL) apparently is not the only company that is benefiting from the ongoing debate about strong demand for iPhone 6. There is already speculation on Wall Street that NXP Semiconductors NV (NASDAQ:NXPI) could register an impressive rally in the market when it posts its quarterly earnings. CNBC’s, Michael Khouw, notes that the Option’s market remains bullish on the NXPI moving by 7% on earnings.

Apple, is AAPL a good stock to buy, Apple Watch, battery life,

“There was a lot of Puts that have been trading ever since the stock had its strong rally over those October lows starting in December and through January. This could have been one institution looking to adjust that position a little bit. Right now, the options market is looking for a move of about 7%, and that is surprising for a stock trading at a low multiple. That has averaged less than 4% move typically on earnings,” said Mr. Khouw.

NXP Semiconductors NV (NASDAQ:NXPI) has continued to soar in the market at the back of its business model of providing high performance and standard solutions for radio frequency. There is belief that as Apple Pay becomes more integrated into financial transactions more clients may come in calling for secure payment solutions. NXP Semiconductors NV (NASDAQ:NXPI) has a wide exposure, with its solutions highly integrated in cars security systems as well as credit cards.

Khouw notes that the Apple Inc. (NASDAQ:AAPL)’s supplier Put traded volume have been surging in the recent trading session heading into the earnings report.

“We saw more than six times the average daily put volume in NXP Semiconductors NV (NASDAQ:NXPI) and that was entirely the result of a substantial Put Butterfly that traded specifically the February $77.5/70/65 Put Fly. […] When you trade a butterfly exactly what you are looking for is the stock to migrate to that Middle strike that short strike that would be $70,” said Mr. Khouw

Pete Najarian on the other hand expects most of the Put volume to be traded at around $70 on expectation of the company posting positive numbers for the quarter.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.