Call Spread on SWKS on 1/20/2015

Skyworks Solutions, Inc. (SWKS) designs, develops, manufactures, and markets analog and mixed signal semiconductors worldwide.

Its product portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers, filters, front-end modules, hybrids, infrastructure radio frequency subsystems, isolators, LED drivers, mixers, modulators, optocouplers, optoisolators, phase shifters, phase locked loops/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches, technical ceramics, and voltage regulators.

The company also offers MIS silicon chip capacitors and transceivers. It provides its products for supporting automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, networking, smartphone, and tablet applications.

The company sells its products directly, as well as through independent manufacturers’ representatives and distribution partners.

Shares have formed a bullish "cup & handle" ahead of the company's quarterly report. The firm post its results later this week. We expect a strong report.

52-Weeks Trading Range: $29.02 to $74.97

Last Trade: $73.85

Trade Buy 1 February $70.00 Call at $6.00 Sell 1 February $80.00 Call at $1.75 For a net debit of $4.25 Profit/Loss Analysis Breakeven at $74.25 Maximum profit is $575.00 at strike of $80.00 Maximum loss is ($425.00) at strike of $70.00 Closing Summary Sold 1 February $70.00 Call at $9.50 Bought 1 February $80.00 Call at $2.35

Position closed on 1/23/2015 at price of $7.15 with a 68.24% gain in 3 days.

Updates

1/23/2015 9:39:27 AM

We are taking profit on SWKS call spread options.

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