Unusually large put options volume today has occurred in Skyworks Solutions (SWKS), as seen in a Barchart report. This could provide a unique short-put play for value investors in this analog semiconductor stock.
SWKS is up about 2% today at $63.83, although it's been trending down since the release of its Q2 earnings report on May 5, after an initial jump to a peak of $83.42 on May 26.
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SWKS stock - last 3 months - Barchart - July 6, 2026 The company is set to finalize an acquisition of another analog semiconductor maker, Qorvo, Inc. (QRVO), by the end of the year. This was after material amendments to the debt covenants were finalized on June 15.
The deal is structured as a merger, but Qorvo shareholders end up with just 37% of the combined company, along with $32.50 per QRVO share in cash received at the close.
According to a recent BNP research report on June 26, as reported in a Seeking Alpha story, the deal is now expected to close at the end of this year, instead of 2027.
That could be why there are now so many options trading SWKS stock.
Unusual SWKS Put Option Activity
This can be seen in today's Barchart Unusual Stock Options Activity Report. It shows that over 32 times the prior number of puts have traded at the $50.00 strike price expiring July 17, 2026, 11 days from now.
SWKS puts expiring July 17 - Barchart Unusual Stock Options Activity Report - July 6, 2026 This $50.00 strike price is well below today's price (i.e., -21.7% lower), so it's considered “out-of-the-money.” The premium paid for this put option is 20 cents at the midpoint. That is also what short-sellers receive.
So, it's likely that short-sellers initiated this activity in order to receive the short-put income. For example, for every put shorted, the investor has to secure $5,000 in collateral. But the account receives $20, or 0.4% of the collateral posted, for the next 11 days.
That works out to a one-month yield, assuming it could be repeated every 11 days, of about 1.2% (i.e., 0.4% x 3).
However, put buyers hope that SWKS stock will fall by over 21% in the next 11 days. That seems highly unlikely. For example, the delta ratio is just -0.0506, implying just a 5% chance that SWKS will drop to $50.00, based on past variance, by July 11.
Moreover, short-sellers will potentially have a lower breakeven point, even if SWKS hits $50.00 by July 11. That is because they get to keep the $0.20 in income already received. So, the next purchase price would be $49.80 ($50-$0.20).
Upside Potential
Analysts seem to be positive on the merger. For example, Yahoo! Finance reports that the average price target (PT) of 23 analysts for SWKS is $73.00. Meanwhile, Barchart's average survey PT is $76.11.
Similarly, AnaChart, which tracks recent analyst write-ups, shows that the average of 14 analysts' PTs is $75.52. That represents a potential upside of over 18% from today's price.
This underscores why today's unusual put option activity is likely more of a short-put income play than anything else. That is despite the low yield that it provides.
As a result, it looks worth repeating by investors, and especially SWKS shareholders, for extra income.
On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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