The shares of Credo Technology Group Holding Ltd (NASDAQ:CRDO) are 12.5% higher to trade at $151.12 at last check, after the semiconductor company announced it will acquire optical transceiver technology name DustPhotonics. Credo will pay $750 million in cash as well as 920,000 in stock.
Credo stock is on track for its ninth gain in 10 sessions, as well as its best day since June. The stock surged to its highest level since January right out of the gate, clearing its 200-day moving average. CRDO now sports a 291.3% year-over-year lead. Keep an eye on the shares' 14-Day Relative Strength Index (RSI) though, sitting in "overbought" territory at 75.
Already, 13,000 calls and 5,371 puts have crossed the tape, volume that's four times the amount typically seen at this point. The most active contract is the April 150 call.
Options are relatively affordable, making this a solid opportunity to bet on the stock's next moves. This is per CRDO's Schaeffer's Volatility Index (SVI) of 91% that ranks in the low 33rd percentile of annual readings. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 75 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.
