Xilinx, Inc (XLNX) is a semiconductor and technology company that develops programmable devices. The company’s stock is currently trading around $42.50 in a 52 week range of $36.24-$48.73. The stock has been relatively weak on the year with shares falling 2.17% year to date. The stock has been on a bit of a rebound however with shares rallying after making recent lows post-earnings. Despite the slight recovery in XLNX options traders are putting on some large bearish bets in the name during todays session.
Earlier this morning a trader bought 8,124 XLNX Sep 40 puts for $0.44 while the stock was trading at $42.74. The stock sold off after the order hit and over 20,000 contracts have now traded on that line. The stock moved to session lows after the order hit the tape and as the stock made lows these puts traded as high as $0.60 on the session making this a very profitable trade. Although the stock is off of session lows these puts are still trading near the trader’s entry price. The stock is below the Ichimoku Cloud on the daily bar so this could still represent a decent short opportunity.
Trade: A trader bought 8,124 XLNX Sep 40 puts for $0.44
Risk: $44 per 1 lot
I bought these puts for $0.48 on average and took a profit target at $0.60. Including the other blocks that traded on this line XLNX has traded 4.5 times its average daily options volume today meaning this order is very significant.