Can’t get away from this one – it’s too good not to call.
There are 38,000 put options under $65 that will lose $6M in value vs. Just 6,000 $55 calls that will come into the money.
Look to this stock to fly up to Max Pain at $65 so anything under that is a gift!
I’m sticking with my original premise of buying the Jan $55 calls as there is so little premium but I am adding the Jan $60 calls as long as the premium (currently $1.94) drops below $1.25, as it should when the stock crosses $63 (on a pullback, of course).
In either case, the trade we discussed this morning is now the Trade of the Day!
