This is the perfect condition for a massive gap down which is why I like put options on ANF right now. As always, don't try to cut it too closely. The last sale on the Feb 2015 27's was only 45 cents. Talk about underpricing risk! I expect these will fetch 10-20x if bought at this price.
Put Options | Expire at close Friday, February 20, 2015 |
Strike | Symbol | Last | Chg | Bid | Ask | Vol | Open Int | ||
---|---|---|---|---|---|---|---|---|---|
27.00 | ANF150220P00027000 | 0.45 |
Want more time in the horizon for safety? Consider the Jan 2016 18's with last at 44 cents:
Put Options | Expire at close Friday, January 15, 2016 |
|
This massive underpricing of risk happens only a couple of times in a lifetime.
Note: This is not investment (gambling) advice. You don't pay me and I don't give free advice. This is just my kind of financial entertainment. If you don't know what options are, stay away from them because they are not for you. The leverage is extreme and the liquidity is low. But, like craps, when an options play wins it wins big. And with an Elliott wave chart providing a tail wind, the odds of winning go up astronomically.
Enjoy!
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