Bulls Target QLogic Options

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David Russell, reporter for OptionMonster.

ALISO VIEJO, Calif. (TheStreet) -- The bulls are targeting QLogic(QLGC Quote) today, three days before the provider of networking products reports earnings.

OptionMonster's real-time tracking systems detected heavy buying of the November 20 calls today, with institutional-sized purchases for 35 cents to 45 cents. Volume surged to 5,793 contracts, almost six times open interest in the strike.

QLogic rose 2% to $18.84 in afternoon trading and is up 36% in the last three months. The shares need to climb another 8% by expiration for the calls purchased today to turn a profit.

The shares are gaining despite management's forecast on July 22 for weaker-than-expected sales and earnings. Fiscal second-quarter results are scheduled to be released after the bell on Oct. 21.

Overall options volume in the name is seven times greater than average today, with calls outnumbering puts by 27 to 1.

-- Reported by David Russell of OptionMonster in New York.