Options trader makes a big bet on volatility into CSX earnings

of about 4% in either direction between when CSX reports and Friday's close. A 4% decline would only bring the stock down to about $73, which is a move that at least one trader thinks is fairly cheap.

"The trade that I saw was a buyer of the January 75-puts for $1.20. They bought 500 of those, and they also purchased 25,000 shares of this stock for $75.48," said Khouw. "When you put that together, it's synthetically equivalent to having bought the 75-"When you buy a straddle, you're betting on volatility, and that's what this trader is betting: that the stock will be more than 4% higher or lower by Friday when these options expire.

The way this bet works out, this trader's break-even level would be about $2.88 higher or lower than that synthetic 75-strike price by Friday.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Stock market investing: Cheap trades for earnings season from Goldman - Business InsiderGoldman Sachs reveals 20 single-stock trades that are historically cheap and will help you make a killing during earnings season
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

I built a 7-figure business without an MBA — here's how - Business InsiderLuisa Zhou argues that not having an MBA was actually beneficial — and a big reason why she's made over a million in revenue in less than a year. BernieSanders AOC ewarren JoeBiden AndrewYang SpeakerPelosi PeteButtigieg MikeBloomberg You are asaian
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »