Not that Bank of America analysts are very brite but a downgrade on overbought Red Had will be devastating for the stock today.
It is way at the top of all its trading ranges, including an 18 month high and is fluing $9 (40%) above its 200 dma. The sector has been out of favor all month so this may be the straw that breaks the camel’s back for Red Hat.
Look for a quck dip back to Max Pain of $21 with resistance on the way down at $22.
I’ll be looking for the Nov. $22.50 put before it gets too expensive, likely a .50 premium given the direction.
