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Strategies & Market Trends : Option Strategies
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To: Cliff0rd who wrote (1735)8/20/2016 9:10:21 PM
From: Jim P.  Read Replies (1) of 2591
 
Cliff0rd

It looks like a similar amount of October $90 and $95 strike calls traded. Not as much outstanding but it may be buying the 90 and 95 October and selling the September 100 and 105 as a partial hedge.

Maybe October $90 traded at $8.50 and the September $100 sold for $1.26, Basis $97.24 or $0.38 to control the stock for an extra month.

Maybe October $95 traded at $4.97 and the September $105 for $0.39. Basis $99.58 or $2.72 to control the stock for the extra month.

I do not follow the stock close enough to have an opinion except the recent earnings jump does not seem to have faded. A 2 month bet on the buy the 90 and sell the 100 for a potential one month gain of roughly $2.50 on $7.25 invested or roll the $100 out for another month and possibly increase the profit potential significantly.

If this is the kind of feed back you are looking for?

I would not do this trade in the IRA as I would have to have too much cash in case of assignment on a single trade.

Jim
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