Today’s tickers: HANS, SWKS & DGX
HANS – Hansen Natural Corp. – Earlier in the month the manufacturer of fruit juice and smoothies handsomely beat Wall Street’s earnings estimate by 20%. The distributor of Monster energy drink said international sales were doing well especially in Europe. During the past 12 months its share price has performed as a good bellwether for its revenue growth with shares jumping from $40 to $73.79 ahead of quarter one results. Before that one savvy investor showed up in the options market using calls at the $75 strike in an effort to profit from better times ahead. The investor paid $1.80 for 5,000 calls reserving the right to pay a fixed $75 to buy the stock ahead of expiration in September. It appears today that the investor is pushing his expectations higher following an accurate call last month. Spread trading in the name today shows the sale of those calls at a stimulated premium of $4.18 for a healthy 132% gain as the investor rolls in to the $80 strike at a $2.60 premium in the same calendar month today.
SWKS – Skyworks Solutions Inc. – A warning from an analyst at Deutsche Bank on Monday exacerbated a retreat from the sky for wireless chip-maker, Skyworks. Its options were among the most actively traded on Monday with almost four puts trading for each call in action. Yet the picture wasn’t entirely bearish. Deutsche Bank warned that its channel research left it concluding that when the credits roll out for Apple’s iPhone 5 in the fall, the Skyworks logo will be conspicuous by its absence. And as if the loss of sales wasn’t enough, Deutsche Bank warns that according to the outcome of meetings with its Asian contacts, the company has aggressively entered a price war to…
