Would you go to the casino and, with 7 to 1 odds, bet that Ford gets above 12.5 by January expiration?
Yesterday it appeared as though the market got a "Romney bump" and at least one options trader believes the market's rally will follow through into the election.
Recently Sprint has been a turnaround story: brand recognition has improved since it began offering customers the iPhone and Galaxy S, and the company has entered the LTE tablet market, boosting revenue and allowing the company to slowly reduce debt.
As Best Buy's stock approaches multi-year lows, one option trader is betting the stock is about to rally.
One is a major oil company, the other is a social media giant. One has a P/E below 10, and the other has a P/E above 120. One has risen almost 20% in the past three months, and the other has plunged almost 30%. But these two companies have at least one thing in common: On Friday the traders on CNBC's “Options Action” see them heading higher.
Yahoo's stock has had a tough year— it’s down 1.5% while the S&P 500 is up 13.3%. But one options trader is betting that the company has better times to look forward to.
On Wednesday, as Microsoft fell for the fourth day in a row, we noticed options traders stepping into the market to buy long-dated calls.
Yesterday we saw some bullish action in Viacom, with one options trader buying 60,000 December 60 calls for $0.50 each with the stock at 54.59.
Something seemed to have the traders on Friday’s episode of “Options Action” feeling mighty bearish.
On Friday we saw some unusual options activity on Facebook.
When Fed Chairman Bernanke unveiled a new round of qualitative easing last week, it sure made the "Options Action" traders optimistic. At least, that’s the way it seemed on Friday’s show, when they presented two bullish trades — one on Apple, and another on Wells Fargo.
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Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.