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Deckers Outdoor Corp. Message Board

  • reality90210 reality90210 Dec 20, 2013 1:59 PM Flag

    Here we go..

    OPTIONS EXPIRE TODAY! How much does anyone want to bet that we will close at 85!!???

    Option monster on 11/26/2013:

    "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."

    Pay attention to the word MAXIMUM!

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    • easy to see how this would end up.

      My guess...upgrades and PT increased move this in the next couple weeks to 90+, then a could downgrades - getting ahead of itself - and it falls back. So Monday I will sell the 86 weekly, but the March 90 calls and hope for a likely pop.

      Taper moves this last week obviously have left people with two main options: growth or value stocks with interest rates staying down.

      Would have replied yesterday, but reconstructive jaw surgery hampered me for a bit. Nothing like myoplex through a straw for Christmas!

 
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