Omnivision Technology (OVTI) shares hit a low of $11.93 on the heels of Apple’s earnings miss, but shares caught a bid in morning action and are now up 68 cents to $12.76. OVTI makes camera chips for a range of high-end smartphones and tablets. Apple’s results might seem to bode ill for the company, which will release it’s results in about a month. But the stock is now higher and options order flow is bullish. 9,655 calls and 430 puts traded on the Santa Clara, CA company. September 15 calls, which are 17.6 percent OTM and expiring in 58 days, are the most actives. 5,225 traded. Aug 15, Sep 16, and Dec 16 are also busy and 30-day ATM vols are up 1.2 percent to 51.5. Looks like speculative call buying in the name — maybe on the view the stock is due to bottom out. OVTI has plummeted 36.2 percent since March and short interest, as of June 29, was about 8.3 million shares (14% of float). Some short sellers might be active in upside calls to hedge positions as shares squeeze higher Wednesday.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.