Get Bullish on This Electronics Manufacturing Firm
By: Pete Najarian | "Fast Money" Contributor
Flextronics has been flexing its muscle with a big rally this month, and now our screens are lighting up with bullish activity.
Yesterday's trading focused on the January 7.50 calls, with buyers paying $0.45 and $0.47, according to OptionMonster's real-time tracking systems. Volume in that one strike was almost 17,000—and this in a name that averages less than 1,000 contracts on a good day.
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The stock climbed 6.02 percent to $6.52 yesterday and has rallied back from about $5.50 in early July. With the 50-day moving average and some recent lows right above current levels, it might be tough to crack though to the upside right away. However, these call buyers are giving themselves plenty of time to make money if the shares continue higher.
The company provides design and manufacturing services to a broad range of companies across the electronics industry. Its last earnings release on April 27 was slightly above expectations, but revenue missed forecasts and the guidance for the next quarter was wide enough to drive a truck through. The next report is scheduled for the afternoon of July 22.
Calls outnumbered puts in the name by a bullish 99-to-1 ratio in the session.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.
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