Yesterday, KDK Options purchased July $52.50 call options. The cost per contract of the option at the time of purchase was $0.22. The expectation price of the option is $2.50. The price of the stock will probably have to move between 7.5 and 10% for the option to reach that price. The stock is currently priced at about $49.00. The reason(s) for the purchase are below.
- Continued growth in the housing market
- Upward trend in the technical charts (3 month daily, 2 year weekly)
- Brokerage buy signals given (Goldman Sachs, Nomura)
If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions.
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **
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