This Chipmaker has Further Room to Run: Traders
Xilinx has been on a tear recently, and the bulls apparently think that it has further to run.
Recent trading has been decidedly positive in the semiconductor company, whose products are used to increase the speed of wireless devices. Yesterday OptionMonster's real-time systemslit up with activity in the July 27 calls in the morning, followed by the July 28s shortly after lunch.
The July 27s mostly traded for $0.60, with volume twice open interest at 4,964 contracts. The July 28s changed hands 9,453 times, with most of the transactions pricing for $0.50.
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Xilinx's stock rose 1.14 percent to $26.66 yesterday. The shares are up 11 percent in the last month, while the Nasdaq and broader technology sector are down over the same period.
The stock rallied after the calls were bought, pushing up the value of the July 27s to about $0.80, while the July 28s were bid for $0.45.
The next earnings cycle falls after July expiration, so yesterday's activity is not related to earnings. The company's last report on April 28 blew past expectations and was accompanied by a very strong forecast.
Calls outnumbered puts by 21 to 1, and overall options volume was more than twice the average level.
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Najarian owns Xilinx shares.