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 **
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