Shares of Navitas Semiconductor (NASDAQ:NVTS) were surging premarket, though the stock has since pared gains, last seen up 2% to trade at $11.96, after the company was selected to produce chips for the U.S. Army's ALATTIS (Accelerated, Large-Area, 10 kV SiC IGBT) program. The contract will permit Navitas to develop 10 kV of silicon carbide power semiconductors.
Though NVTS has shed roughly 65% since its June 3 record high of $34.17, it's still up 64.3% year to date. Heading for its third loss in four sessions, the shares are grappling with recent pressure at the 60-day moving average.
It's worth noting that short interest represents 16.6% of the stock's available float. It would take shorts three days to buy back their bearish bets, at NVTS' average pace of trading.
The memory-chip stock sports cheap options too, per its Schaeffer's Volatility Index (SVI) of 76%, which stands higher than just 5% of readings from the past year, implying that near-term options traders are pricing in relatively low volatility expectations. What's more, Strategy stock Schaeffer's Volatility Scorecard (SVS) sits at 98 out of 100, indicating the equity has tended to exceed options traders' volatility expectations during the past year.
