Option Bulls Zero In on Xilinx, Inc. (XLNX)

Xilinx, Inc. (XLNX) traders are buying soon-to-expire calls

by Griffin Kruse

Published on Apr 16, 2015 at 2:19 PM
Updated on Apr 20, 2015 at 5:32 PM

Tech name Xilinx, Inc. (NASDAQ:XLNX) is 1.2% higher at $44.40, and is on pace for its highest settlement of 2015. Looking to the options pits, call volume is running at twice the average intraday pace, with some traders gambling on last-minute upside for the stock.

Today's most popular contract by a mile is the April 45 call, where it appears new positions are being bought to open. By purchasing this option at a volume-weighted average price (VWAP) of $0.26, speculators expect XLNX to muscle its way north of $45.26 (strike plus VWAP) by the close tomorrow, when the contract expires.

Today's appetite for calls echoes recent sentiment in the options pits, with speculators upping the bullish ante ahead of earnings next Wednesday. Over the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 24.18 XLNX calls have been bought to open for every put, which is a higher ratio than 97% of all equivalent readings taken over the past year.

Meanwhile, the brokerage bunch is lukewarm at best on Xilinx, Inc. (NASDAQ:XLNX). Specifically, 72% of covering analysts rate the security a "hold" or worse. Additionally, XLNX's consensus 12-month price target of $42.76 sits below current trading levels, suggesting a round of upbeat analyst attention could be coming around the bend, should XLNX extend its momentum.

Daily Chart of XLNX Since October 2014

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