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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bulls See No Limit for Skyworks Solutions

Stocks in this article: SWKS OVTI

By David Russell, reporter at OptionMonster

NEW YORK -- The bulls had high hopes in Skyworks Solutions (SKWS) on Friday after fellow iPhone supplier OmniVision Technologies (OVTI) reported strong results.

optionMONSTER's tracking systems detected unusual activity early in the session, with the September 33 calls bought for 35 cents and 40 cents. More than 6,500 changed hands against previous open interest of 3,404 contracts.

Calls 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 gapped higher Friday morning and closed higher by 3.61% to $30.46 -- just below the highs. The September 33 calls later fetched as much as 55 cents, 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 SWKS was six times greater than average in the session, with calls outnumbering puts by almost 10 to 1.

Russell has no positions in SWKS or OVTI.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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