Skyworks Solutions (SWKS) is off $5.21 to $24.27 in heavy trading of 19.3 million shares after the company offered guidance ahead of a 2012 analyst day.The decline in the stock gathered momentum as the event happened and investors seemed disappointed with projections for chip supplies to iPhone 5 during the Sept quarter. There were high expectations leading up to news (see 9/19 color). The stock is reeling, yet some investors seem to view the weakness as an opportunity for bullish options strategies on Woburn, MA semiconductor company. One player recently bought a Jan 26 – 30 call spread on the stock for $1.40, 2000X. Another 5,500 of the same spread just traded for $1.40. Earlier, 4,000 Jan 27.5 – 30 call spreads were bought on Skyworks for $1.15, 4000X. The volume is impressive, as 64,000 calls and 16,000 puts traded on the stock and implied volatility is up 23 percent to 59.5.
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.