Investors with a lot of money to spend have taken a bearish stance on Semtech SMTC.
And retail traders should know.
We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with SMTC, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 10 options trades for Semtech.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 40%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $30,710, and 9, calls, for a total amount of $561,590.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $35.0 and $40.0 for Semtech, spanning the last three months.
Insights into Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Semtech's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Semtech's substantial trades, within a strike price spectrum from $35.0 to $40.0 over the preceding 30 days.
Semtech Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SMTC | CALL | TRADE | BEARISH | 12/20/24 | $9.8 | $9.5 | $9.5 | $35.00 | $95.0K | 336 | 315 |
| SMTC | CALL | SWEEP | NEUTRAL | 12/20/24 | $10.8 | $9.5 | $9.5 | $35.00 | $95.0K | 336 | 215 |
| SMTC | CALL | SWEEP | BEARISH | 12/20/24 | $7.6 | $7.5 | $7.5 | $40.00 | $67.5K | 505 | 305 |
| SMTC | CALL | SWEEP | NEUTRAL | 12/20/24 | $7.5 | $7.2 | $7.5 | $40.00 | $67.5K | 505 | 215 |
| SMTC | CALL | SWEEP | BULLISH | 12/20/24 | $10.7 | $9.4 | $9.6 | $35.00 | $67.2K | 336 | 115 |
About Semtech
Semtech Corp is engaged in designing, developing, manufacturing and marketing analog and mixed-signal semiconductors, algorithms and wireless semiconductors, connectivity modules, gateways, routers and connected services for IoT. The company operates in four reportable segments' 1) Signal Integrity, 2) Advanced Protection and Sensing, 3) IoT System and 4) IoT Connected Services. The majority of the company's revenue is earned through Advanced Protection and Sensing Products segment. Geographically majority of the company's revenue is earned from Asia Pacific region.
Following our analysis of the options activities associated with Semtech, we pivot to a closer look at the company's own performance.
Current Position of Semtech
- Trading volume stands at 2,054,483, with SMTC's price up by 2.7%, positioned at $38.05.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 36 days.
What Analysts Are Saying About Semtech
In the last month, 5 experts released ratings on this stock with an average target price of $40.4.
- Reflecting concerns, an analyst from Piper Sandler lowers its rating to Overweight with a new price target of $40.
- An analyst from Baird persists with their Outperform rating on Semtech, maintaining a target price of $50.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for Semtech, targeting a price of $45.
- Consistent in their evaluation, an analyst from Craig-Hallum keeps a Buy rating on Semtech with a target price of $36.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Semtech with a target price of $31.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Semtech with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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