Traders are looking for Skyworks Solutions to rally.
optionMONSTER's monitoring program shows that 2,220 Weekly 72.50 calls expiring on March 11 were purchased for $1.90. Volume was more than 64 times open interest at the strike, which indicates new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
SWKS rose 4.15 percent to $73.01 on Friday but is down 16 percent in the last three months. The last quarterly report on Jan. 28 was bullish. The next quarterly report is estimated for after the close on April 28.
Overall option volume was 3 times greater than average. Calls outnumbered puts by a bullish 6-to-1 ratio.
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