HIMX swing ideaI decided to take another look at HIMX on the technical level because fundamentally, this a great company and it offers some fantastic price action, plus I saw a few bullish sweep alerts, you can see the volume coming in on those further dated strikes. The volume is also high when compared to the open interest, again only on certain strikes/expiry. NASDAQ:HIMX
This is a simple swing trade.
My stop loss is $9.75.
Lot's of 20-30% moves in a short period of time.
The price has been respecting this channel it trades in, a high of around $14.00 - $16.00 and a low of where we are about now. I plan to swing it back to the $12.00/$13.00/$14.00 range.
I really like this company so I will probably exercise one or two of those contracts, they pay a dividend and my thoughts are that HIMX will trade in sympathy with the china tech and e-commerce, even though it's Taiwanese, it get's the kind of the reg-fear and volatility you see with the former. They also pay a dividend at a rate of 2.57% and a PE of 5.42 is almost free compared to most stocks.
Compare MCHP at 89 P/E and MX trading at only 12x. By the way MX chart looks like a very similar price fade in a similar way HIMX did. If semi conductors are strong the rest of the week I think we'll see HIMX start making it's move up the top of the channel.
Please share your thoughts, I'm more than obliged to hear them.
