OptionMonster's tracking programs detected the purchase of 7,200 September 50 calls Thursday, most of which priced for 77 cents to 80 cents. Volume was more than triple the strike's previous open interest of 1,956 contracts, indicating that this is fresh buying.
Long calls lock in the price were a stock can be purchased, letting investors position for a rally with limited risk. The contracts can also generate significant upside leverage, but they will expire worthless if shares remain below $50 through mid-September.
Xilinx rose 0.45% to $46.86 on Thursday. The system-on-a-chip manufacturer peaked above $55 in March but fell to $45 following a poor earnings report, roughly the same price level where it peaked in 2013 and early this year. It was also resistance all the way back in 2002, which could make some chart watchers expect it to provide support now.
Total option volume in the name was quadruple its daily average for the last month, with calls outnumbering puts by a bullish 28-to-1 ratio.
Russell has no positions in XLNX.