UBS just upgraded Netherlands-based semiconductor equipment stock ASML Holding NV (NASDAQ:ASML) to "buy," with a price-target hike to €750 from €660, citing potential upside after the stock's recent underperformance. In response, the shares were last seen up 1.8% at $767, heading for their third-straight daily win.
The stock has yet to make it back to pre-earnings levels after its July 16 earnings bear gap of 8.3%, while today's peak was met by overhead resistance at the 320-day moving average, which could still pressure the shares moving forward. Still, the shares are up 11.1% since the start of 2025.
Options traders are chiming in on today's pop, with 7,947 calls and 4,410 puts exchanged so far -- double the options volume typically seen at this point in the day. The weekly 9/12 830-strike call is the most popular, followed by the 810-strike call in the same series, with new positions opening at both.
Options are reasonably priced at the moment, per ASML's Schaeffer's Volatility Index (SVI) of 29%, which ranks in the low 4th percentile of its annual range. This means options traders are pricing in low volatility expectations at the moment.
