Skyworks Solutions (SWKS) is down $1.38 to $21.79 and implied volatility up after Deutsche Bank cut the stock to Hold from Buy. 28,000 puts and 8,200 calls traded on the Woburn, MA chipmaker. Much of the volume is in August in-the-money and out-of-the-money puts, with some players likely exiting positions after a four-month 40.7 percent slide in the share price. For example, August 25 puts, which are 12.8 percent ITM, are the most actives. 4,600 traded (71 percent Bid) against 3,976 in open interest. Still, some investors are likely taking new positions in reaction to the downgrade and implied volatility in SWKS is up 10 percent to 54.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.