Can anything stop Skyworks Solutions?

By
A A A

Skyworks Solutions reports earnings on Thursday, and the bulls are piling in early.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,342 August 49 calls for $1.75 and the sale of an equal number of July 47 calls for $1.90. Volume was below open interest in the nearer-dated contracts, which indicates that an existing position was closed and rolled forward in time.

Long calls lock in the price where the chip maker's stock can be bought, letting investors bet on a rally with limited risk. They tend to lose value quickly after major news events such as quarterly results, so today's adjustment eliminates that risk. Today's trader collected $0.15 and now has an additional month to benefit from upside in the shares--albeit at a higher entry price. (See our Education section)

SWKS is up 0.66 percent to $47.54 in afternoon trading and has risen 67 percent so far this year. Results have consistently beaten earnings forecasts as the company's analog chips increasingly find their way into new kinds of uses such as heart monitors, gaming platforms, and automobiles.

Total option volume is triple the daily average so far in the session, with calls outnumbering puts by more than 7 to 1.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: SWKS

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

64,789,752
  • $117.60 ▼ 0.86%
53,107,118
  • $10.39 ▼ 1.05%
42,600,857
  • $17.10 ▼ 0.47%
36,917,582
  • $11.02 ▼ 0.36%
34,902,121
  • $40.75 ▼ 0.10%
31,489,742
  • $15.68 ▲ 0.06%
31,037,743
  • $75.63 ▲ 2.19%
29,605,187
  • $10.11 ▼ 0.69%
As of 11/25/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com