Smart Money Is Betting Big In SMTC Options

Author: Benzinga Insights | June 07, 2024 10:31am

Financial giants have made a conspicuous bullish move on Semtech. Our analysis of options history for Semtech (NASDAQ:SMTC) revealed 8 unusual trades.

Delving into the details, we found 37% of traders were bullish, while 37% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $78,580, and 6 were calls, valued at $193,326.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $15.0 to $39.0 for Semtech over the last 3 months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Semtech's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Semtech's whale activity within a strike price range from $15.0 to $39.0 in the last 30 days.

Semtech Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
SMTC	PUT	SWEEP	BULLISH	06/21/24	$11.8	$10.2	$10.37	$39.00	$51.9K	298	54
SMTC	CALL	SWEEP	NEUTRAL	01/16/26	$22.4	$16.4	$19.4	$15.00	$38.8K	20	0
SMTC	CALL	SWEEP	BULLISH	12/20/24	$5.8	$4.5	$5.48	$32.00	$32.5K	517	158
SMTC	CALL	TRADE	NEUTRAL	06/21/24	$2.8	$1.65	$2.3	$30.00	$31.9K	1.8K	2.1K
SMTC	CALL	SWEEP	BEARISH	12/20/24	$6.2	$4.5	$5.03	$32.00	$30.4K	517	99

About Semtech

Semtech Corp is engaged in designing, developing, manufacturing and marketing analog and mixed-signal semiconductors, algorithms and wireless semiconductors, connectivity modules, gateways, routers and connected services for IoT. The company operates in four reportable segments' 1) Signal Integrity, 2) Advanced Protection and Sensing, 3) IoT System and 4) IoT Connected Services. The majority of the company's revenue is earned through Advanced Protection and Sensing Products segment. Geographically majority of the company's revenue is earned from Asia Pacific region.

After a thorough review of the options trading surrounding Semtech, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Semtech's Current Market Status

• With a volume of 4,779,316, the price of SMTC is down -19.37% at $30.62.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 90 days.

Expert Opinions on Semtech

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $51.6.

• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Semtech, targeting a price of $50.
• An analyst from Craig-Hallum has decided to maintain their Buy rating on Semtech, which currently sits at a price target of $48.
• In a cautious move, an analyst from Piper Sandler downgraded its rating to Overweight, setting a price target of $60.
• Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Semtech with a target price of $50.
• An analyst from B. Riley Securities persists with their Buy rating on Semtech, maintaining a target price of $50.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Semtech with Benzinga Pro for real-time alerts.

Posted In: SMTC