Thursday, April 7, 2016

Options Steam Alert MS

There is a very aggressive Put buyer in Morgan Stanley today.  It looks like they are going to hold thru earnings on 4/18. 
 
Alert: MS Fri 4/29 22 Puts (Wkly) Sweep: 12,752 @ ASK $0.24: 12,752 traded vs 353 OI: Earnings 4/18 After Close $60.89 Ref $23.98
 
This is about a $290,000 bet on Morgan Stanley moving down $2.25 by expiration on April 29th.
 
I have not traded anything in MS yet today.  If I do I am going to buy in the money probably the APR5 16 25 Strike Puts trading around $1.50 (7) of them.  There fairly inexpensive and liquid and I want more exposure to the move.  If we get the move to $21.75 these options will be worth $3.25 or profit 116% or around $1,225 for our $1,050 investment.

No comments:

Post a Comment