Sun, Apr 20, 2014, 7:33 AM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Deckers Outdoor Corp. Message Board

  • reality90210 reality90210 Dec 5, 2013 10:25 AM Flag

    Picture perfect clearity

    Here's the main reason. Option monster on 11/26/2013: Someone needs to keep this between
    $82:50 and $85.00 by options expiration on 12/20/2013.

    "A big call spread topped yesterday's option activity in Deckers Outdoor as shares hit five-year highs.

    optionMONSTER systems show that a trader bought 3,500 December 82.50 calls for $2.25, above the ask price, while selling 7,000 December 85 calls for $1.15. Previous open interest in the strikes were 33 and 66 contracts respectively, indicating that new positions were established.

    This ratio spread takes in a credit of $0.05, which will be the profit if DECK remains below $82.50 through expiration in mid-December. The maximum gain would be realized with the stock right at $85 at that time. Above that level, the trader is effectively short shares."

    After 12/20 we see this shoot up.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • BUMP AGAIN.. told you all range bound between 82.5 and 85. Once this big options trader moves the yard stick higher, we go higher, once he moves it lower, we go lower. He needs to keep it below 85 and above 82.5 until 12/20/2013. Take that to the bank.

    • Hence why selling the $85 weeklies on shares is very profitable right now. I expect my covered calls to either expire worthless tomorrow or to buy them back for pennies and resell the $85s again for next week for $1.50 or more each. And if not, I am still realizing excess profit if it stays below 86.20 based on the options I sold.

    • Options expiration of first week of December and not 3rd Week.

      A big call spread topped yesterday's option activity in Deckers Outdoor as shares hit five-year highs.

      optionMONSTER systems show that a trader bought 3,500 December 82.50 calls for $2.25, above the ask price, while selling 7,000 December 85 calls for $1.15. Previous open interest in the strikes were 33 and 66 contracts respectively, indicating that new positions were established.

      This ratio spread takes in a credit of $0.05, which will be the profit if DECK remains below $82.50 through expiration in mid-December. The maximum gain would be realized with the stock right at $85 at that time. Above that level, the trader is effectively short shares. (See our Education section)

      DECK rose 2.15 percent yesterday to close at $81.64 after hitting an intraday high of $83.04, both their highest levels since 2008. The footwear maker was below $60 a month ago.

      Sentiment: Strong Buy

      • 2 Replies to div2622
      • This number of contracts is likely a trade by a firm, not an individual, btw. These are a lot riskier as well unless you can keep the price at bay for expiration.

        Wish I had held my strangle on ULTA though now...ditched to early...did not expect that much volatility. Oh well, back to watching DECK tomorrow. Hoping for an 84.90 close.

      • All nonsense. Options are for idiots. Anybody tells you outside of a bank that they are making money on options....the question becomes why aren;t you a billionaire. IF you can predict EXACTLY when a stock is going to to be somewhere, then...there is no reason that person should not be the wealthiest person in the world.

        Warren Buffet doesn't touch options and never has and that is the way I go. I OWN my stock and as long as that company is in busiess, they can;t take my money away. No bs of "expiration". Welcome to Atlantic city with that idea.

        Z

 
DECK
76.86-1.45(-1.85%)Apr 17 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
AsiaInfo-Linkage, Inc.
NasdaqGSWed, Jan 15, 2014 4:00 PM EST