ON Semiconductor - Earnings 2/7 Pre-market - Could continue to run all day

Earnings kind of snuck up and caught me off guard for this stock. The last couple times it gapped up and continued to run for 3-4 days. I missed the morning dip Friday to make an entry and by afternoon the option chain was already jacked with people piling in on calls ATM/ITM, while the puts chain was pretty minimal.

Anyhow, quick background for ON. onsemi was founded in 1999. The company was originally a spinoff of Motorola’s Semiconductor Components Group.

Products include power and signal management, logic, discrete, and custom devices for automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power applications. onsemi runs a network of manufacturing facilities, sales offices and design centers in North America, Europe, and the Asia Pacific regions.

As mentioned above, the company was spun off / founded in 1999, and starting in 2000 they wasted no time acquiring other semiconductor companies / chip fab facilities (essentially averaging one per year).

Last earnings their big news was partnerships with automotive companies like Audi, Subaru, and others. Not just for existing vehicle (to help with the “chip shortage”) but also future EV development.

Obviously its too late / risky to buy in for earnings Monday before market opens, however if they blow expectations out of the water again this stock is likely to run for the rest of the day, possibly for up to 2-3 more (though risky with all the other earnings and CPI report Thursday). If they fall flat on their face for some unknown reason, then obviously puts could become a play.

Stock moved up 2.15% Friday, and another 2.23% after hours. On great earnings they could possibly push 6-8% as a guestimate, plus (or minus) whatever mood the market is in general.

Closer to the money options are always safer, depending on how many days you plan to hold be sure to give yourself an appropriate amount of time choosing an expiration date. Theta is stupid for Feb 11 & 18th, so unless you are wanting a very quick scalp look further out. Likely in the first 5 minutes there should be a good dip from people taking profit, or possibly wait for about 30 minutes after things have calmed a bit.

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Massive volume on the 2/11 chain yesterday on 59 and 60. Tried to get in on the action with a spread but could not get a fill. Bought some shares.

Volume in relation to OI.

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UW breakdown. I see that the largest option trade was an OTM call for 02/11, and the Most Active Chains are dominantly calls.

100K, 14dte. Very bullish.

Scrolling through 10K, 14dte, as well was very bullish

Check the call premiums and bull flows %

Easy to say that UW flow indicates a bullish earnings. We’ll see how it goes.

Also agreed on the perspective that we can play the post-ER trend. CPI Data Release is on Thursday, February 10 premarket. Should close the call position before that.

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Nice find Beaker. Read up some on the company this weekend and looks like a good long term hold. For what it’s worth Seeking Alpha rating system is very bullish.

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ON Semiconductor Q4 EPS $1.09 Beats $0.94 Estimate, Sales $1.85B Beat $1.79B Estimate

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ON Semiconductor 1Q Guidance Above Analyst Expectations

The company, focused on automotive and industrial end-markets, predicts revenue of $1.85 billion to $1.95 billion, which would be above FactSet consensus of $1.78 billion.

ON said it sees adjusted EPS of 98 cents to $1.10, which would be higher than FactSet consensus of 82 cents non-GAAP EPS.

“Outlook for our business remains robust as evidenced by over 60% year-over-year growth in our design win funnel driven by our highly differentiated intelligent power and sensing portfolio,” Chief Executive Hassane El-Khoury said in the company’s fourth-quarter earnings release.

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Made good money on this callout. Thanks beaker :pray:

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Nice callout by Beaker. Typically as Beaker has noted, ON tends to run after earnings. Haven’t had time to go through the conference call transcripts but the stock has been creeping up over 10% in the afternoon

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