Semtech Corporation’s options market signaled strong bullish sentiment on Monday, with call volume nearly tripling puts as traders targeted a potential breakout by September 18, 2026. The stock climbed 4.1% to $125.87, extending a 137.1% gain over the past year.
Options activity totaled 10,082 contracts, with a notable concentration in a 4,000-contract spread involving September 18, 2026, $115 and $145 call options—2,000 contracts each. Open interest in the $145 call stood at 2,963, compared with just 83 for the $115 call, indicating a preference for higher strike prices. A separate trade involved 1,184 contracts in January 2028 $50 puts, which hold an open interest of 7,565.
Volatility metrics reflected the heightened activity, with 3-month implied volatility declining 1.7 points to 87.83%. The 90/110 skew remained flat at 0.31 percentage points. Semtech’s forward price-to-earnings ratio was 43.6x, while a derived fair value estimate from pricing models was $88.25, well below the current share price.
Analysts maintained a predominantly bullish stance, with a mean price target of $201.38, a high of $230, and a low of $155. Of 15 analysts covering the stock, 13 rated it a buy. The company’s recent strategic focus on AI networking and LoRa technology, alongside asset sales, has contributed to investor optimism.
Semtech is scheduled to report earnings on August 25, with market participants closely monitoring the results for further direction.
