The bulls had high hopes in Skyworks Solutions on Friday after fellow iPhone supplier OmniVision Technologies reported strong results.
optionMONSTER's tracking systems detected unusual activity early in the session, with the September 33 calls bought for $0.35 and $0.40. More than 6,500 changed hands against previous open interest of 3,404 contracts.
Calls lock in the price investors must pay to buy shares, so they could generate some nice leverage if the chip maker keeps rallying in the near term. But if it doesn't, they will expire worthless.
SWKS gapped higher Friday morning and closed higher by 3.61 percent to $30.46 -- just below the highs. The September 33 calls later fetched as much as $0.55, which shows how quickly they can move!
The semiconductor company has been pushing higher as investors prepare for Apple to launch iPhone 5, which uses its products. See researchLAB for more companies that supply the iPhone.
Overall option volume in SWKS was 6 times greater than average in the session, with calls outnumbering puts by almost 10 to 1.
(A version of this post appeared on InsideOptions Pro yesterday.)
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