Monthly Perspective: 'Overly Optimistic' Option Trade
Interesting trade today with 10,000 calls bought today for Jan 2015 $50 strike by some institution. Maximum upside strike!
Source:(twitter.com/OptionsHawk)
My Perspective:
The trade is very long term but still worth noting. It's either a large upside bet or probably a hedge. This trade might just be the 1st leg of a larger trade to come in the coming months. Hard to start a pure long position at this price level unless you know something amazing about YHOO thats not priced in. Risk-Reward doesn't suit me at least.
A long-term buyer here should wait for a deeper pullback to get in.
Strong Resistance zone $40-$44.
Next Resistance ~$50 is 0.38 Fib.
I have no position nor do I intend to start here.
Source:(twitter.com/OptionsHawk)
My Perspective:
The trade is very long term but still worth noting. It's either a large upside bet or probably a hedge. This trade might just be the 1st leg of a larger trade to come in the coming months. Hard to start a pure long position at this price level unless you know something amazing about YHOO thats not priced in. Risk-Reward doesn't suit me at least.
A long-term buyer here should wait for a deeper pullback to get in.
Strong Resistance zone $40-$44.
Next Resistance ~$50 is 0.38 Fib.
I have no position nor do I intend to start here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.