Navitas Semiconductor Corp (NVTS) stock continued its upward trajectory, soaring 5.08% in pre-market trading on Tuesday. This surge follows an impressive rally of nearly 25% on Monday, as investors react to the company's announcement of its upcoming earnings report and show optimism in the semiconductor sector.
The pre-market rally appears to be an extension of Monday's enthusiasm, which was triggered when Navitas revealed it would report earnings on August 4. Despite the lack of specific earnings forecasts, investors have shown remarkable confidence in the company's prospects. This optimism is further bolstered by positive sentiment in the broader semiconductor industry, as exemplified by an upgrade of Texas Instruments by Seaport Global Securities analyst Jay Goldberg, who noted improving conditions in the analog inventory cycle.
Adding fuel to Navitas' momentum is the extraordinary options activity observed on Monday. The company saw a total of 243,247 options traded, a volume 10.2 times higher than its 90-day average. Notably, bullish bets on Navitas showed significant gains, with one particular call option expiring this Friday seeing a staggering 2400% increase. This surge in options activity, particularly in bullish positions, suggests that traders are positioning themselves for potential further upside in Navitas stock.
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