Call buyers look for Skyworks to soar
Mike Yamamoto | [email protected]
More than 3,200 February 26 puts changed hands in a strong buying pattern on Friday for prices between $3.70 and $4, according to optionMONSTER's systems. Open interest in the strike was just 63 contracts at the beginning of the day, so these puts were clearly new positions.
SWKS fell 2.27 percent on Friday to close the week at $22.84 after climbing from below $20 in the last three weeks. The semiconductor company hit a 52-week high of $31.44 in September but gapped down from about $30 after lowering guidance and again from the $24 level when it announced earnings results in early November.
Friday's in-the-money calls are looking for shares of the iPhone chip supplier to rise more than 30 percent by expiration in mid-February after Apple's next quarterly report, retaking the $30 level where they were trading in the summer. Those long calls could be sold earlier if their premiums rise any rally before then, but they will lose value if the stock doesn't move. (See our Education section)
Overall option volume in the name was more than 3.5 times its daily average. Puts outpaced calls by about 70 percent in the session.