2) NXP Semiconductor (NXPI) 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)
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.
Options volatility ranged from 62% – 66.4%.The company traded recently at $32. The $32 call option expiring on March 16 suggests that some investors think Universal Display shares will trade higher in the short-term. Written by Kapitall contributor Chris Lau