High Call Value in Amicus Therapeutics

There has been an alert. We noticed that there is a high value placed in the options for Amicus Therapeutics (FOLD).

The January 17th $10.00 call option bid is currently $0.30. With the stock currently at $9.74, someone out there is offering the opinion (with their option bid) that the stock is likely going higher by about 7% (the stock will need to surpass $10.30 for any profit) in the next 2 weeks. There are 40 etf's that contain shares of FOLD including IWM and BBP (Information courtesy of etf.com

 Options players can move on this in 2 ways.

- First, bullish traders can purchase contracts of the option and hope through a rise in the stock, the option increases in value before the January 17th expiration date.

- The second option is for call sellers and revenue generators of the stock out there. They can sell the call option(s) on any blocks of 100 shares earned for the $0.30 per contract. It provides a safety valve in pushing your cost basis down by $0.30 per share. It also locks in a 2 week profit of about 7% ($0.56) at the $10.00 strike price in 2 weeks if your purchase price is around today's price. 

Technically, there is a possible abc ending ready to get to a leg 3 starting.  A chart is below

 





 ** 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. If you would like research done on a stock you own or are thinking about buying, email at kdkoptions@gmail.com **

Call Value High in Colony Northstar (CLNY)

There has been an alert. We noticed that there is a high value placed in the options for Colony Northstar (CLNY).

The February $5.00 option bid is currently $0.15. With the stock currently at $4.70, someone out there is offering the opinion (with their option bid) that the stock is likely going higher by about 10% (the stock will need to surpass $5.15 for any profit) in the next 2 months.

Options players can move on this in 2 ways.

- First, bullish traders can purchase contracts of the option and hope through a rise in the stock, the option increases in value before the February 21st expiration date. Earnings are likely the first week of February. With most banks reporting in mid January, a push up in anticipation for earnings could create a nice level of revenue for the option.
- The second option is for call sellers and revenue generators of the stock out there. They can sell the call option(s) on any blocks of 100 shares earned for the $0.15 per contract. It provides a safety valve in pushing your purchase price down $0.15 per share. It also locks in a profit of about 10% at the $5.00 strike price in 2 months if your purchase price is around today's price.  Given the troublesome earnings of the company, some insurance might not be bad thing either.

 Technically, the chart has hit the $4.50 range 3 times in the last year with a bounce happening afterwards. A yearly daily chart is below.

 



 ** 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. If you would like research done on a stock you own or are thinking about buying, email at kdkoptions@gmail.com **