by Houghton and Atkeson 08/22/08
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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Sam Collins
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
