One of my friends has been working for Blue Coat and I've been loosely tracking this stock. It's on my B watch list. As I look at their option pricing for Sep/Oct for puts and calls, they seem fairly priced. It's not a heavily traded stock, but the Open Interest for what I would trade, in this case 1 strike ITM or ATM, in this case, Sep80C, would be reasonable. It has the most Open Interest.

The past 3 days has been pulling back from a nice run up from $60 to $87. That's almost a 50% increase at just the announcement of a 2:1 stock split to take place Sep 13th. The following week is expiration week. Right now, it looks to be trading into a descending wedge, so maybe a good bracket would be to look for a breakout either to the upside or downside and play that to the split possibly.

I'm not playing this tomorrow with a long weekend coming up. This will give the stock 2 more days to see if it really is trading into a descending wedge with falling volumes, creating pressure. If it does do this then my brackets will be as such on Monday:

- Upside @ 81.25 for Sep80C - 3, IYUIP, Targets @ 92.50, 102.70
- Downside @ 79.10 for Sep80P - 3, IYUUP, Targets @ 67.80, 61.70
Labels: edit post
0 Responses

Amazon Store