Xilinx has seen bullish option activity for several months , and traders are coming back for more upside bets in the chip maker.
More than 5,000 June 36 calls traded in a heavy buying pattern yesterday, led by two prints of 1,397 and 1,000 that went for $2.25, optionMONSTER's Heat Seeker system shows. The volume was more than 4 times the strike's open interest before the session began, clearly indicating that this is new activity.
XLNX slipped 0.71 percent yesterday to close at $36.39, falling below its 50-day moving average. Shares have pulled back since hitting $39.43 on Feb. 19, their highest price since April 2004.
The long calls , which lock in the price where traders can buy shares, are looking for XLNX to gain roughly 5 percent or more by mid-June. These in-the-money options could be sold earlier at a profit with any rally before then, but they will lose value if the stock doesn't rise. (See our Education section)
Total option volume exceeded 7,700 contracts yesterday, 5 times its daily average for the last month. Overall calls outpaced puts by nearly 4 to 1, a reflection of the session's bullish bias.
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