I enjoy getting calls in stocks that other traders dislike, or have been selling hand over fist for many months. This stock certainly fits that bill. It is some 60% off its 52 week high and sits a mere $7 from its 52 week low. It also enjoys some rapid moves in either direction, making out of the money calls/puts great trades when volatility comes.
The company has fallen out of favor with investors with growth recently slowing. However the company has a lot of cash on hand to weather the recent slow down, and the stock could see a sharp recovery from recent lows.
For me this stock is more about the chart than anything else. I like how it has moved off recent lows and the stock looks to be trending higher. I think a 5-7% move is coming and I am positioned via $42 October calls. They trade for $.40 right now with a $.35 bid and $.45 ask. Should the stock hit $41.00-$41.50 early next week we could see these options double. A move over $42 could see further gains. If the stock crumbles under $39, these options will lose their value very quickly.
$MLNX Mellanox Technologies, Ltd.
I am in $42 October calls at $.40 and $.45
The $41 calls offer a little less risk and trade for $.60
I think longer term we could see a move back to $80 trendline resistance.
Good luck.