Stocks quoted in this article:
The 20 stocks listed in the table below are the S&P 400 MidCap Index (MID) components that have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Skyworks Solutions Inc (NASDAQ:SWKS), with call buyers looking for short-term gains.
Skyworks Solutions Inc call volume is running at a slightly faster-than-usual pace this afternoon. In fact, calls outstrip puts by a nearly 6-to-1 margin. Traders have their eyes on short-term contracts, too, per the equity's 30-day at-the-money implied volatility -- currently 1.1% higher at 31.1%.
Most active is SWKS' in-the-money August 51 call, where the vast majority of the action transpired as a multi-exchange sweep of 1,000 contracts. With volume outstripping open interest at the strike, and the calls crossing the tape at an ask price of $1.50 each, it's safe to assume a new call buyer was behind the trade.
As mentioned previously, the contracts are currently in the money, with the stock up 2% at $52.30. However, in order to profit at this Friday's closing bell, when the options are due to expire, the speculator needs SWKS to topple $52.50 (strike plus premium paid), with additional gains accumulating north of here. If the shares have backpedaled below the strike at week's end, the trader risks losing the entirety of his initial cash outlay -- or $150,000 (premium paid * number of contracts * 100 shares per contract).