Traders apparently believe that declines will be limited in Xilinx.
optionMONSTER's tracking programs detected the sale of 8,300 September 45 puts for $2.29 and $2.30 in the last half-hour of yesterday's session. Volume was more than 23 times open interest at the strike, showing that these are new positions.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
XLNX fell 0.92 percent to $47.43 yesterday but is up 1 percent in the last month. The programmable-chip maker reported bullish results on Jan. 20 and is expected to announce its next quarterly numbers after the close on April 20.
Overall option volume in the name was twice its daily average yesterday
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