Buy Alert: July 23, 2014

Marcus Haber | July 23, 2014

Buy Alert: July 23, 2014

Trade Details

Buy Altera (ALTR) September 34 Calls for $1.40 or better

Why?

Altera, a specialized semiconductor company, is down big today because one of its competitors missed earnings expectations. In fact, Xilinx (XLNX) lowered its guidance significantly and is hurting the entire industry.

However, ALTR earnings don’t come out until tomorrow, and investors are upbeat about the company’s prospects. Just because XLNX missed, it doesn’t mean ALTR will too. In fact, I look at situations like this as a great time to buy calls.

Let’s grab the September 34 calls here.