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Traders Switch Sides as Mobileye NV (MBLY) Jumps on Earnings

Mobileye NV (MBLY) is getting a solid lift from an earnings beat

May 11, 2015 at 2:50 PM
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Mobileye NV (NYSE:MBLY) calls are trading at 1.8 times the expected intraday rate, following the technology firm's first-quarter earnings beat. Digging deeper, speculators are purchasing new positions at the weekly 5/22 45 strike, anticipating the stock will extend its lead north of the strike through next Friday's close, when the weekly series expires.

MBLY calls generally aren't as popular as puts. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.88 puts for every call.

Pessimism is running high elsewhere on the Street. Specifically, 15.2% of MBLY's float is sold short, which represents almost nine sessions' worth of pent-up trading activity, at the average daily rate.

Mobileye NV (NYSE:MBLY) has given few reasons for traders to be skeptical. Year-to-date, the shares have rallied 16%, and were last seen 2.7% higher at $47.05.
 
 

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