This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Expect Big Swings From These 3 Tech Stocks

Chris Lau, Kapitall  Trading volatility for technology companies reflects large recent price moves. The wide price swings lead to an increase in the price of options. Below is a list of derivative contracts with expiry dates ranging from March 2013. If the contract price is met, the contract could be exercised, otherwise, they could expire worthless. In the technology space, there are 3 companies worth taking a closer look. [Related articles:  Looking Closely at Cramer’s Technology Buy and Sell Calls​]

1)    Groupon (GRPN)

Screen shot 2013-03-06 at 1.36.46 PM

Volatility for Groupon rose after the company reported quarterly losses, and removed its founder and CEO. Volatility was as high as 85.9% for the Put option expiring on May 18 2013 and trading for $0.10. Shares in Groupon dropped after earnings were released, but gained back 9.6% after the executive departure.

An analyst from Wells Fargo ( WFC) cut the rating in the company, citing weak margins and eventual competition with ( AMZN) as reasons for the downgrade.

The sheer volume of options trading implies that Groupon shares will make wide moves in the weeks ahead. The $4.50 March 16 Put had a volume of 8,669. Groupon closed recently at $5.10, up 12.58% on the day.

2)    NXP Semiconductor (NXPI)

Screen shot 2013-03-06 at 1.36.34 PM

NXP disclosed in early-February 2013 that Private-Equity (P-E) investors sold 30M shares in the company. KKR reduced its position in the company from 15.9% to 12.8%. Other P-E firms reducing positions included Bain, Silver Lake, and Apax Partners. 

NXP’s March 16 2013 option call exercisable at $30 has a volatility of 41.4%. NXP closed recently at $32.19.

3)    Universal Display (PANL)
Screen shot 2013-03-06 at 1.36.05 PM

Options volatility increased for Universal Display following quarterly earnings that were mixed. The company provided revenue guidance for the full year that ranged between $110 million to $125 million for 2013. In the last quarter, research and development spending increased by 34%, to $8 million. The company earned $0.12 per share, missing consensus by $0.01. Revenue increased 51% from last year to $28.1M. Analysts expected revenue to be $1.67M less than actual.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs