Insights 
VT 
Lattice Semiconductor Corporation reported earnings that exceeded expectations, with a 0.55% beat on earnings per share and a 0.25% increase in revenue. Despite this, their stock initially dropped to $65.00 in after-hours trading before stabilising around $72. This was attributed to a dip in GAAP profit and the market’s view that the Q4 guidance lacked the aggressiveness expected.
The stock’s price was contained below a key resistance level at $76.61 since September 23rd, which is important for any upward movement. If the price breaks and sustains beyond this, the next resistance target is $84.69. The stock showed resilience during a recent consolidation, hinting that this momentum may help push prices higher.
However, if bullish momentum does not hold, $65.08 is the initial support level, marked during the after-hours drop. A confirmed break below this could cancel the current bullish trend. The next support would be at $61.52, where Lattice’s stock might find a base for a future rally.
Based on the recent price action, we are looking at a classic case of the market punishing a stock for not exceeding already high expectations. While LSCC delivered a double beat on earnings, the slight decline in GAAP profit and conservative forward guidance was enough to trigger a sell-off. This reaction is consistent with broader trends in the semiconductor sector, where we’ve seen valuations swell over the past two years, making any hint of slowing growth a catalyst for volatility.
For traders anticipating a bullish recovery, the critical level to watch is $76.61, which has acted as a ceiling since late September. A sustained break above this price would signal that the market has absorbed the guidance and is ready to move higher, making call options or bull call spreads targeting the $84.69 level a viable strategy. The stock’s ability to consolidate and hold its ground after the initial drop shows underlying strength that could fuel this move.
Conversely, the after-hours plunge to $65.08 has clearly defined the primary support level. A daily close below this price would negate the bullish consolidation pattern and suggest a deeper correction is underway. This would be a signal to consider buying put options or establishing bear put spreads, with an initial price target near the next support at $61.52.
Given the sharp price swing, implied volatility has likely expanded, making it more expensive to buy options. We’ve seen this pattern before, especially around earnings for tech stocks where IV rank often pushes above 50% just before the report. This environment can be advantageous for traders who believe the stock will remain range-bound between $65 and $76, creating opportunities to sell premium through strategies like iron condors.
