Best Stock on the Market

Call Options on NXPI on 12/22/2016

Bullish Flag on NXPINXP Semiconductors N.V. (NXPI) provides high performance mixed signal and standard semiconductor solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide.

It offers products for car audio and visual head-end unit applications, in-vehicle networking products, two-way secure entry products, and various sensors and microcontrollers.

The company also provides secure identification solutions comprising passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems.

In addition, it delivers semiconductor-based technologies for connected devices, secure mobile transaction solutions, and various connectivity solutions; and offers digital networking processors, secure interface and system management products, high-performance RF power-amplifiers, and smart antennae solutions.

Further, the company provides standard semiconductor components, such as small signal discretes, power discretes, protection and signal conditioning devices, and standard logic devices. Its products are used in automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting, and industrial applications. NXP Semiconductors N.V. markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. 

Shares have formed a bullish "flag" after Qualcomm (QCOM) announced that it will purchase the firm for $110 per share in CASH. Higher share prices are expected for this stock. The deal should close by February 10th.

52-Weeks Trading Range: $61.61 - $107.54

Last Trade: $97.45

Trade

  • Buy 1 February $100.00 Call at $1.50
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $101.50
  • Maximum profit is unbounded
  • Maximum loss is ($150.00) at strike of $100.00

Closing Summary

  • Sold 1 February $100.00 Call at $2.50

Position closed on 2/10/2017 at price of $2.50 with a 66.67% gain in 49 days.

Updates

2/10/2017 10:39:56 AM

We are selling the Feb 17th NXPI $100 Call options at $2.50. We believe the contract is heading higher but it is a safe bet to lock in profits. The contract expires next Friday.

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