NetGear (NTGR) breaking higher to start the week and saw an unusual opening seller for 1000 March $17 ITM puts at $2.20, showing strong confidence in current levels potentially being a new higher floor into year end as the stock clears its yearly value area above 16. NTGR rarely sees much notable options flows so seeing an in-the-money (ITM) put seller into a breakout is often one of my favorite signals, especially in a lesser followed small cap stock such as NTGR.

The $476M tech communications company trades at 0.3x sales with revenues seen rising 7% in FY25 after a tough early 2024 as it undergoes a turnaround story and recently reported a narrower loss than expected in Q2. NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. 

Shares are now clearing higher into space above the 16 resistance zone and has a large volume pocket up to 19-20 where it can rally into from here. Weekly chart RSI also making fresh highs above 60 confirming the strength and the anchored VWAP from the 2021 highs is up at 22 for a potential bigger extended target into year end.