Traders are bullish on Skyworks Solutions ahead of quarterly results next week.
optionMONSTER's monitoring program shows that 5,800 August 72.50 were purchased for $1.20 to $1.65 today. This represents fresh buying, as volume surpassed open interest of 1,535 contracts.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
SWKS rose 2.85 percent to $67.21 in afternoon trading but is down 15 percent in the last three months. The company, which supplies chips to the iPhone, is scheduled to report earnings after the close on July 21.
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