Volume Spike Investor

Maxim Integrated Circuit (MXIM) is down slightly on fairly mundane volume this afternoon, but the strong put buying is of note, given that the stock is one of analysts’ very favorite right now in the semiconductor group.

Analyst sentiment for MXIM seemingly can’t get much higher, with estimate revisions on the rise and analyst ratings high across the board. The company is expected to benefit from strong demand for chips that go into handsets from customers such as Samsung and LG Electronics. Also, the company’s chips are in hot new products such as the Amazon Kindle.

Maxim is set to report earnings in early August. With sentiment still very strong, there’s both time and momentum that could easily carry the stock to January 2008 resistance around $17 in the coming weeks.

But it’s a stock worth watching, as today’s put activity may suggest that upside is limited, and some are betting on a coming momentum shift.