Put Volume Spikes on NXP Semiconductors (NXPI)

Shares of NXP Semiconductors (NXPI) are trading lower on the session by 0.78%, at $21.55. The stock has been sliding lower ever since making a new 52-week high in September. NXPI has now broken down through the 20-day, 50-day, and 200-day moving averages.

With shares losing the $22.00 support level, bears are swarming the name today, pushing overall put volume to 10.3x normal volume.

The heaviest action is coming on the November $20.00 strike, where over 4,000 puts were purchased, on the offer, for $0.70-0.75. The largest trade was a block of 3,043 contracts, bought for $0.75. Open interest is only 201, indicating new positioning.

The January 2013 $20.00 put is also active with 1,281 contracts traded on open interest of only 570. The majority of the action has been purchases on the offer for $1.50.

30-day implied volatility is spiking 8.9% today to 60.27%; 10-day historical vol is registering 46.58%.

NXP Semiconductors N.V. is a holding company. The company is a semiconductor company. The company provides High Performance Mixed Signal and Standard Product solutions.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.