I am taking a position in the Nov 20 calls for $1.65 – a .20 premium to the price.
The company went crashing down because they announced a secondary offering (and got downgraded) on the 25th and put options above $22.50 outnumber call options below it by 8:3 so I am fairly confident the stock will hit that by next Friday.
Also, 3,700 Dec. $22.50 options were purchased yesterday for $1.20 so those people think that this stock will be over $23.70 in 40 days. Nobody is buying December puts, or Feb puts for that matter.
The stock also looks very oversold so I’m not following my 10% rule here but I will ride it to the $22.7 resistance point if I can, then do the old 1/2 – set 10% stops – 1/2 – set…
