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Actionable news in SWKS: Skyworks Solutions, Inc.,

Buy Skyworks Solutions' Straddles And Hold Them Through Earnings

Skyworks Solutions Inc. (SWKS) is reporting earnings on Thursday, July 21st, after-hours:

(Source: TD Waterhouse)
The stock has been quite volatile historically following earnings announcements. On the other hand, the options are priced quite cheaply relative to historical data:

(Source: TD Waterhouse)

The straddle (calls and puts with a strike price of $68.50) is worth around 7.7% of the current market price of the stock today. Keep in mind that there are four days until the options' expiration. Historically, the stock has shown the following mean and standard deviation figures:

(Source: Google Finance. Calculations by author)

A four-day straddle, according to this data, would have a standard deviation of...


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