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business newsSkyworks Solutions: Sky's the Limit?
Block transactions, volume looking moderately bullish.
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The former finally has a steady management team and business model in place, and the latter is showing the incipient formation of an inverse head-and-shoulders formation.
But a couple of smaller bogeys have popped on my option radar. Both have shown price action that's not really correlated with the overall market. This places them in a small minority, as most charts can be overlaid and match the broad indices. That's a steep, narrow climb followed by today’s hanging berry.
Skyworks Solutions (SWKS) has seen its shares double since February around $4, but has essentially flatlined near $8 since March11 - which is when the market bottomed. Today, shares are off fractionally, despite the broad market sell-off.
This morning, there was a large block transaction of 10,000 of the April $7.50 call traded. Even though prior open interest was 12,000, it appears this is tied to stock, so it looks like someone was establishing a buy-write. I'll need to check open interest tomorrow to confirm whether or not this was a new position.
There was also notable volume in both the April and May $7.50 puts, which traded 3,100 and 2,900, respectively, against prior open interest of less than 400 contracts in each strike - meaning this is likely to emerge as new open interest. The question is whether this is connected with the above to create some sort of a collar. Either way, it would be moderately bullish.
Turkcell (TKC) shares haven't fared as well of late - off some 45% in the past 6 months and only gaining some 5% to $12 in the past 3 weeks. But the stock is actually trading higher today.
Some of the recent pressure on shares might be attributed to a recent ruling that forced private investor Alpha Finance to reduce its 9% stake by half and dump shares at a discount.
Today’s notable option transaction involved the July $10 puts, which saw a 4,300 block hit the tape at the $0.85 bid price. Prior open interest in the strike was just 56 contracts. This appears to be a put-write - that is, selling stock and selling puts to create a moderately bearish position. But it could be Alpha undergoing further liquidation of stock but selling some longer-dated puts to maintain a slightly bullish bent.
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