Notice the breakout of the triangle in price and also in momentum with the stochastics.
This triangle projects a target stock price of at least $12.90.
The best option for this play is the Dec 12.50 calls which are 0.05 Bid/ 0.15 Ask.
The true value of the option is 0.15 so they are neither cheap or expensive.
If the stock goes to $12.90 in the next 2 weeks, these options should trade .50/.55 for a 233% return. You might even be able to get the options for 0.10 and split the spread, but don't count on it.
Here is the rub though.
This HAS to be money you can kiss goodbye.
This is a very aggressive play as the bid on these options is virtually worthless.
That being the case, I would risk no more than you can comfortably part with in the event that the stock never makes it to 12.90.
There is some serious potential here though and should you have excess risk capital it might just be a great return.
No comments:
Post a Comment