Traders See Upside In NXP Semiconductors

Shares of NXP Semiconductors NV NXPI jumped on speculations of a takeover bid from Samsung.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that NXP Semiconductors traded more than six times its average daily call volume on Thursday.

Check out other tech stocks making big moves in the premarket.

There were buyers of 1,240 of the June 200 calls at $2.40 per contract on average, Khouw mentioned. The traders are “risking a little over 1% of the current stock price on a bet that we could see some follow to this speculative upside that we saw on the stock today,” he stated.

The trade sees shares of NXP Semiconductors climbing at least 10% by June expiration, Khouw added.

NXPI Price Action: Shares of NXP Semiconductors jumped 4.04% to settle at $184.22 on Thursday.

Posted In: CNBCMichael KhouwOptimize AdvisorsLong IdeasOptionsMarketsMediaTrading Ideas

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