Bulls Returning to OmniVision Tech (OVTI)
August 30, 2010 12:02 PM
Shares of OmniVision Technologies Inc. (NASDAQ: OVTI) are lower on the session by 3.23%, currently trading at $22.50. The stock has been moving largely higher over the past six months, though has experienced resistance around $24.00. Note that the stock has regained the 50-day moving average on higher than normal volume.
Options traders are selling protection on the name today, reflecting the thesis that the stock can rally back to new highs. The October $24/23 put spread was sold 1,203 times for a net credit of $0.55. Volume exceeded open interest on both strikes and thus represents new, bullish positioning.
Put volume is now running at 2.89x the daily average.
OmniVision Technologies, Inc. designs, develops and markets semiconductor image-sensor devices. Its main products, image-sensing devices, which it refers to as CameraChip image sensors, capture an image electronically and are used in a number of consumer and commercial mass-market applications.
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