Wi-Fi router manufacturer NetGear Inc (NASDAQ:NTGR) is surging 9.8% higher this morning, last seen at $24.23, headed for its best daily pop since August. Driving today's gains is news the Federal Communications Commission (FCC) has banned all imports of foreign routers, citing national security risks.
Today's bull gap has NTGR contending with its year-to-date breakeven mark, trading at levels not seen since December. Gains could be capped by the 260-day moving average, however, which sits just overhead.
Short interest has been on the rise, up 6.4% during the past two reporting periods. This accounts for 8% of the stock's total available float, or over four days' worth of pent-up buying power.
Options look like an affordable way to go. This is per NTGR's Schaeffer's Volatility Index (SVI) of 51%, which stands higher than 32% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
