4 Tech Stocks Seeing Bullish Sentiment From Options Traders

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 |  Includes: CCOI, CLS, DIOD, FORM
by: Kapitall

Analysts use the put/call ratio as an indicator for the sentiment surrounding a stock – if a stock’s put/call ratio drops, it indicates that fewer options traders are bearish on the company’s outlook.

We ran a screen on stocks from the tech sector for those that have seen significant drops in put/call over the last ten trading days.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Are you bullish on these companies’ outlooks? Use this list as a starting-off point for your own analysis.

List sorted by decrease in put/call ratio.

1. Diodes Incorporated (NASDAQ:DIOD):
Makes and distributes standard semiconductor products to manufacturers in the consumer electronic, computer, communications, industrial, and automotive markets. Market cap of $843.60M. Open interest Put/Call ratio changed from 0.74 to 0.07 between 09/21/11 to 10/04/11, a change of -90.54%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). The stock is a short squeeze candidate, with a short float at 7.88% (equivalent to 6.55 days of average volume). The stock has gained 7.06% over the last year.

2. FormFactor Inc. (NASDAQ:FORM):
Designs, develops, manufactures, sells, and supports precision and high performance advanced semiconductor wafer probe cards. Market cap of $338.15M. Open interest Put/Call ratio changed from 0.66 to 0.41 between 09/21/11 to 10/04/11, a change of -37.88%. The stock is a short squeeze candidate, with a short float at 6.02% (equivalent to 5.77 days of average volume). The stock has performed poorly over the last month, losing 10.01%.

3. Celestica Inc. (NYSE:CLS):
Provides electronics manufacturing services and solutions to original equipment manufacturers (OEMs) in the consumer, communications, enterprise computing, industrial, aerospace and defense, healthcare, and green technology sectors in Asia, the Americas, and Europe. Market cap of $1.53B. Open interest Put/Call ratio changed from 0.15 to 0.11 between 09/21/11 to 10/04/11, a change of -26.67%. The stock has lost 10.74% over the last year.

4. Cogent Communications Group Inc. (NASDAQ:CCOI):
Provides high-speed Internet access, Internet protocol, and communications services to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Market cap of $637.93M. Open interest Put/Call ratio changed from 0.80 to 0.62 between 09/21/11 to 10/04/11, a change of -22.50%. The stock is a short squeeze candidate, with a short float at 5.49% (equivalent to 7.24 days of average volume). The stock has gained 44.87% over the last year.

*Short data sourced from Schaeffer’s, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.