Skyworks Solutions, Inc. (SWKS) is a producer of semi-conductors and integrated circuits. The company’s stock is currently trading around $32.55 in a 52 week range of $19.57-$39.33. The stock has been outperforming the market this year with shares rallying nearly 25% year to date. SWKS call options have been active today with a block of May 37 calls being bought this morning. A trader bought 2,500 SWKS May 37 calls for $1.25, labeled as an opening position. This is a $312, 500 bet on further upside in SWKS through May expiration. With shares of SWKS trading above the Ichimoku Cloud it would appear that this trader is getting long rather than hedging a short position.
Block Trade: Trader bought 2,500 SWKS May 37 Calls for $1.25
Risk: $125 per 1 lot
Reward: Unlimited
Breakeven: $38.25