Novice Trade: Xilinx

There was some really fishy paper (option orders) in Xilinx (XLNX) yesterday. A customer bought in small batches of more than 11,000 the June 3 48.5 calls, paying as high as $0.20. Today, those calls look to go out worthless, but it's worth noting the flow. It points toward something bullish happening in this name over the next few weeks.

My guess is this customer is going to come back looking to trade again and at some point he or she will be right. I would be a buyer of the June regular 47.5 calls for less than $1.00. If the customer does come back this will let me sell them something. Better yet, the stock will pop....8 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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