Lattice Semiconductor (LSCC) shares gapped higher on July 31, following a stronger-than-expected earnings report. Since then, the equity has been flirting with new highs, and today is on pace for its highest close in 17 years. What’s more, now could be an opportune time to purchase LSCC call options to speculate on even more upside for the stock.
The equity has already nearly tripled in 2019, with most pullbacks contained by its 40-day moving average. LSCC shares were last seen 5.2% higher on the day, set to end atop the $20 level for the first time since 2002.
Against this backdrop, the semiconductor concern found its way onto Schaeffer’s elite list of stocks trading near 52-week highs whilst sporting attractively priced option premiums. Specifically, LSCC’s Schaeffer’s Volatility Index (SVI) of 45.2% registers in just the 18th percentile of its annual range, suggesting near-term option premiums are relatively deflated right now.
Over the past five years, there have been three other times when LSCC shares were within 2% of a new annual high while the stock’s SVI sat in the bottom 20% of its annual range. After those signals, the security averaged a one-month gain of 8%, per data from Schaeffer’s Senior Quantitative Analyst Rocky White. From LSCC’s current perch at $20.10, another 8% surge would put the stock around $21.71 — in new-high territory.
With near-term options practically on sale, speculators wanting to roll the dice on more short-term upside for LSCC should consider purchasing calls. The security’s September 17.50 call was last asked at $3.30, meaning buyers would profit the higher the shares soar north of $20.80 (strike plus premium paid) by the close on Friday, Sept. 20, when the front-month options expire.