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July 24, 2013  Wed 4:14 AM CT

HIMX: SEE CHART GET CHAIN FIND STRATEGIES
Himax Technologies continued to spike higher yesterday from the Google investment announced earlier this week, and option traders are looking for even more gains in the Taiwanese semiconductor company.

optionMONSTER's Heat Seeker system detected heavy buying in calls at several strikes yesterday, including nearly 9,000 March 6s that went for $2.29 to $2.85, almost 5,000 August 7s for $0.65 to $1.10, and more than 3,000 September 7.50s for $0.75 to $1.14. Volume was well above the previous open interest at each strike, indicating new activity.

These long calls lock in prices where traders can purchase the stock no matter how far it might rise. They are looking for HIMX to keep rallying but can expire worthless if shares remain below the designated strike prices. (See our Education section)

HIMX rose 7.86 percent yesterday to close at $7.27. The stock surged more than 30 percent on Monday after Google announced that it would take a large stake in Himax, which manufactures chips used to make Google Glasses.

Total option volume in the name was just shy of 31,000 contracts yesterday, 19 times its daily average for the last month. Overall calls outpaced puts by nearly 7 to 1.
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