Sky's the Limit -- Skyworks Solutions (SWKS)

by Houghton and Atkeson   08/22/08
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Skyworks Solutions (SWKS) makes analog and mixed signal semiconductors for wireless communications devices.



On Aug. 8, its competitor Anadigics (ANAD) pre-announced lower earnings. This could be either good or bad news.



The good news interpretation would be that SWKS is taking share and helped cause ANAD's miss. The bad news could be that the industry is struggling. Or the upcoming news is entirely unexpected.



In any event, options investors are betting the news is good near-term.


Today, options investors are buying the SWKS Sept 10 Calls (GAKIB) more than 4,500 times so far. This represents more than eight times the usual volume.



SWKS is currently trading at about $9 per share and is not scheduled to reort earnings until the end of October.








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