QLGC – QLogic Corp. – Network infrastructure products designer, QLogic Corp., attracted a bevy of bulls during the session with the value of its shares increasing as much as 2.9% to an intraday high of $16.81. QLGC was rated new ‘buy’ with a share price target of $19.00 at Capstone Investments today. Investors expecting QLogic’s shares to continue to appreciate ahead of expiration day next month picked up at least 3,700 calls at the October $17.5 strike for an average premium of $0.49 apiece. Call buyers make money if QLGC shares surge 7.00% over today’s high of $16.81 to trade above the average breakeven price of $17.99 by expiration. The October $17.5 strike calls have been popular as of late. The majority of the 6,061 lots of existing open interest at that strike were purchased. Bullish positioning may have been spurred, in part, by rumors EMC Corp. may be preparing to make a bid for the company. Options implied volatility on the QLGC currently stands 10.00% higher at 42.75% as of 12:25 pm ET.
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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.
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