Holy crap....look at the activity on the $10 puts for July!
1,553 blocks sold around $1.20! That's 155,300 shares...or in otherwords, someone with $1,620,000 in shares just sold a boatload of puts. The purchase was at the "ask", so someone thinks this sucker is going to plummet over the next 4 months! Am I reading that right?? I'm a long...so don't be bashing me...lol, I just happened to be looking at my own March covered calls I sold (which in retrospect may have been a dumb idea) and saw that transaction. Any thoughts??
not sure what yer looking at but no PUTS for July traded today (as of 239p-est) so...you see there's OPEN INTEREST of 1900+ which could mean resistance or support for the stock. The July CALLS have 4x's? the OPEN INTEREST, which will either keep it under 10...or it blows through 10 and those short calls get raped....he he he. I'm thinking of selling Mar. calls to I own under 10, and don't mind losing the stock at 10. THose July 10's give me similiar q? you have though...someone is hedging one way or the other.
Just go to your ten day chart. draw a trend line under the rise of the past ten days......
make sure you have at least three touches (otherwise you are just drawing lines).
Now you have a view of what's happening....as you see, right now, the trend line support is at about 10.3
it breaks that, or wherever it is tomorrow, that's it....down it goes.
being a HFT climb, you'll see looking over the past ten days there's no support anywhere really until 9.9....and that's a maybe...serious support starts at about 9.2, which held it for about tthree days.
now if you really want to flip this stock, which i have been doing when bored....draw along a top line. you see the channel the stock has been rising in? you hit the top, short. close when it holds the bottom trendline.
this is not rocket science when you are dealing with a HFT item. what i do wonder about is ...do companies actually sit down and discuss this? i mean, when the HFT crew moves on, this, like all the others i've played in the past year, its going to drop like stone.
so, you have to wonder how the various companies feel about this trading technique.
anyway, hope this helps....this is better than calls or puts....and you just sit then -- no commissions or risk involved in this -- and wait until it hits and holds a support level.
Yeah...I totally get that, but the bid ask spread is typically pretty big on options, so someone with a lot of money bought those at the "ask" which I think says more about the buyer than the seller. Don't you agree? Who buys that many options at the ask without having a pretty firm expectation the stock is going down?? We're not talking little retail traders here.