Wednesday, September 27, 2006

Excellent Call buying opportunity

While just going through the list of stocks that I follow, I have stumbled upon this really strange options situation.

Accenture reports tomorrow. The October and Novemeber $25 calls are trading at no premium. Stock is at 29.3 and the October and November call is trading at 4.3 to 4.4. So then the question is if the earnings are expected to be really bad and so the calls are suddenly trading cheap. The Options Interest is really low and so no that can't be the case. I mean if the earnings are bad then so be it but it's not the expectation currently going by the open interest on the calls or puts.

The biggest connundrum is how can the same strike price option for 2 consecutive months trade at the same level.

Got to buy it at this point!!!!

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