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Bulls See No Limit for Skyworks Solutions

David Russell|Writer, OptionMonster
Tuesday, 4 Sep 2012 | 6:17 AM ET
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The bulls had high hopes in Skyworks Solutions on Friday after fellow Apple 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 (learn more) 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.

Skyworks shares 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.

Overall option volume in Skyworks was six times greater than average in the session, with calls outnumbering puts (learn more) by almost 10 to 1.

—By CNBC Contributor David Russell.

Additional News: OmniVision Shares Jump on Higher Sales Guidance

Additional Views: Further Upside for Apple on iPhone Shipments: Pro

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David Russell is a reporter and writer for OptionMonster. Russell has no positions in SWKS or OVTI.

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