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ONN.tv reviews option strategies for bullish and bearish investors in Black & Decker.
Related Symbols: BDK
Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – Black & Decker Corp. (NYSE: BDK)
On Oct. 14, a cast member on Fast Money recommended BDK. He was bullish on the fact that the company beat on sales, because it shows the market that it is not just cost cutting that drove the earnings report. BDK shares were trading at $65.10 at the time of this report, up from $51.35 at the time of the Fast Money recommendation.
Bullish Option Trades on BDK:
On Oct 19, Mad About Options highlighted BDK and said bullish investors sold January 55 straddles for $8.80 and bought January 60-30 strangles for $1.40. Investors collected $7.40, and the spread expired with the stock at $70.28. This trade was a winner of $2.40 with the stock up $13.75.
Bearish Option Trades on BDK:
Bearish investors bought May 40 puts for $2.20 and sold May 55-65 call spreads for $2.50. Investors collected 30 cents per spread, which is now marked at $6.60. This trade was a loser of $6.30 with the stock up $13.75.
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
Two Traders, One Strategy Steve and Jared take a look at risk management strategies on the OH platform.
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