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Now may be the right time to buy ON Semiconductor’s dip
Digging deeper, ON Semiconductor stock pulled back to its 260-day moving average for the first time since mid-July. According to Schaeffer’s Senior Quantitative Analyst Rocky White’s last study, the security has seen four similar signals in the last three years, and was higher one month later 75% of the time, averaging an 5.6% gain. A move of similar magnitude would place ON just shy of the $62 level.
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A sentiment shift in the options pits could send ON Semiconductor stock even higher. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ON’s 50-day buy-to-open put/call ratio of 1.29 ranks in the 99th percentile of its annual range. This means options traders have rarely been more put-biased. Echoing this, the security’s Schaeffer’s put/call open interest ratio (SOIR) of 1.22 stands in the 88th percentile of readings from the past year.
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Image and article originally from www.schaeffersresearch.com. Read the original article here.