EMCORE Corporation (EMKR) offers semiconductor products for fiber optics, solar power, and broadband industries. The stock is trending higher today up $0.40 (7.54%) on the day on the back of bullish order flows earlier this week. On Wednesday there was heavy trading in the EMKR Dec 5 calls. Open interest in that line has now swollen to over 8,600 contracts indicating there is a good chance EMKR continues higher. The stock is also trading in bullish territory according to the Ichimoku Cloud. The cloud is upward sloping and trending higher, also indicating further upside in EMKR. We believe that EMKR sets up well for a long term trade.
Trade: Buying the EMKR Mar 5 Calls for $0.95
Risk: $95 per 1 lot
Reward: Unlimited
Breakeven: $5.95
These calls have a 70 delta meaning they will trade very much like the stock. These calls allow a trader to establish a long position in EMKR in a more capital effective way. With breakeven only $0.40 higher this trade allows for a trader to participate in EMKR upside right away.
