The bulls are back in Skyworks Solutions after tripling their
money earlier in the month.
On
Oct. 4
, traders bought the October 18 calls for $1.15 to $1.20. The chip
maker shot above $22 on
Oct. 14
, and those contracts were worth more than $4.50.
Buyers came back on Friday morning, this time picking up about
4,000 November 20 calls for $1.80. About 1,400 November 23 calls
were bought later in the day for $0.50 to $0.60, and total options
volume in the session was triple the daily average, according to
optionMONSTER's Heat Seeker tracking system.
The enthusiasm earlier in the month surrounded the use of SWKS's
chips in the latest version of Apple's iPhone. It had rallied along
with several other suppliers including Nuance Communications,
Triquint Semiconductor, and Arm Holdings.
SWKS has pulled back since then, closing Friday down 5.1 percent at
$20.29. It's now attempting to hold support at its 50-day moving
average and is down from about $35 back in February.
The latest catalyst is the release of fiscal fourth-quarter results
after the bell on Thursday. If they're strong, those November calls
could deliver some major upside mojo. SWKS has beaten estimates the
last two times it reported earnings, but some investors may be
concerned after TQNT's weak guidance on Wednesday. (See our new
researchLab
service)
(A version of this post appeared on
InsideOptions
on Friday.)
