XLNX – Xilinx, Inc. – Shares of the semiconductor development company are down 3% in morning trading to stand at $22.97 as of 10:50 am (ET). Despite the decline in the price of the underlying stock, investors initiated bullish trading strategies in the June contract. It looks like traders shed some 3,335 put options at the June $22 strike to pocket an average premium of $0.65 per contract. Investors keep the full amount of premium received as long as XLNX shares exceed $22.00 through expiration day next month. The overwhelming majority of the 6,185 lots of put open interest at that strike also look to have been sold for roughly half the amount of premium as today’s put sales during Monday’s trading session. Perhaps put sellers do not expect Xilinx shares to slip beneath $22.00 by expiration, or maybe they are more than willing to have shares of the underlying stock put to them at expiration if the puts land in-the-money at that time. XLNX’s shares last dipped below $22.00 back on November 6, 2009, when the stock touched down at $21.81.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers