Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.

The Pick – XLNX (XLNX):

On Oct. 14, Jim Cramer told investors he is a fan of XLNX, which just reported a “great quarter” and is part of his mobile Internet index. XLNX shares are trading at $24 at the time of this report.

Bullish Option Traders on XLNX:

Investors looking for XLNX shares to maintain their levels could buy March 17 calls for $7.20 and sell March 25 calls for $1.70 to pay $5.50. This trade will be profitable if XLNX shares expire higher than $22.50. Maximum gain on this trade is $2.50 minus commissions, and maximum loss is $5.50 plus commissions. For more options education on bull call spread check out this edition of Options Physics.

Bearish Option Traders on XLNX:

Bearish investors who see a range in XLNX shares could employ a longer-dated collar, and buy Jan. 2011 20 puts for $2.10 to sell Jan. 2011 25 calls for $2.90 and collect 80 cents on this trade. Ths collar will be profitable if XLNX shares expire below $25.80. Maximum gain on this trade is $20.80 minus commissions, and maximum loss is being short the stock higher than $25.80. For more options education regarding collars check out this edition of Options Physics.

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