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.
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
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.
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