Bull & Bear: Synaptics Incorporated
June 28, 2011 3:23 PM
Shares of Synaptics Incorporated (NASDAQ: SYNA) are trading lower on the session by 0.28%, at $24.73. With the recent slide in shares, you have to wonder where they are heading next…
Bulls: Bulls will note that the $24.00-25.00 range has been major, major support for Synaptics Incorporated. During the past year shares have jumped off of that level twice and rallied over 25% each time.
Bulls will also note that shares are trading in oversold territory. Relative call volume also spiked slightly today, roughly 1.5x normal volume. The 26.8% short interest could also stoke the bull fire.
A bullish trader could buy the August $25/27/28 call tree for a net debit of $0.55.
Bears: Bears will note that the 20-day, 50-day, and 200-day moving averages are all downward-sloping. While call volume has been relatively elevated today, put volume has been dominating for the past two weeks even on an absolute basis (i.e. Big money buying puts).
Bears will also note that Synaptics Incorporated has beat earnings estimates every quarter for the past two years, yet the stock price doesn't move higher. This is often an indication that the stock will continue to meander sideways for the foreseeable future.
A bearish trader could buy the December $24-20 put spread for a net debit of $1.35.
Synaptics Incorporated is a worldwide developer and supplier of custom-designed user interface solutions that enable people to interact and intuitively with a variety of mobile computing, communications, entertainment and other electronic devices.
