Bet on continued rally though May, 2020.
Nearly 4,000 contracts traded on the May 2020 $15 call options on Seaspan Corporation (SSW). Compared to the prior open interest of 553 contracts, it’s a seven-fold surge in volume.
Shares trade in the low $13 range, meaning they need to move $2 higher, or about 15 percent, before expiration in May to close in-the-money.
- Breaking News: Market Takeover In Effect (Claim your share!)
Goldman Sachs, JP Morgan, Citigroup, and all the big funds are getting pummeled by the all new Robinhood Effect sending some stocks to the moon...
Whenever a stock falls below fair value… the Robinhood Effect happens… and it happens FAST… and it could pay the likes of $1.83 million to regular investors.
The option price of around $0.50, or $50 per contract, means the buyer starts to make money if shares hit $15.50.
Seaspan is an independent charter owner and manager of container ships based out of Hong Kong, operating a fleet of 119 ships.
Action to take: Shares of the company have rallied nearly 37 percent in the past year, even as global trade has seen a decline. The company has managed to maintain a massive 38 percent profit margin as well, making for a great long-term holding. With shares near a 52-week high, they’re still work buying up to $14 for a continued rally.
For speculators, we like the May call option trade. It’s a perfect play on trade war fears declining. And while Hong Kong stocks have suffered from the massive protests there, any improvement in conditions there could likewise create a rally. And given how cheap the trade is, the leveraged effects of the options trade could lead to great returns on the options trade.