If You Want to Know What Stock Is Set To Skyrocket, There Are Options
Bloomberg Markets|February - March 2021
WHAT DO NIKE INC., Raven Industries, and Fortinet Inc. have in common? They exemplify the predictive capacities the options market offers: Recent stock price spikes were preceded by certain telltale signs in the options market, according to data compiled by Bloomberg. Use the terminal to generate ideas for enhancing your portfolio and profit from ever-changing option trading trends.
JUAN CHAMORRO and MARK JORDAN

First, let’s review basic option theory. If you’re bullish on a company, you have two choices: You can buy its stock; or, if you’re willing to sustain a greater level of risk, you can buy a call option, which is a contract that grants the right to buy the underlying stock at a predetermined price on or before expiration of the contract. Your goal is for the stock’s price to rise above the call option’s strike price, so you can exercise it when it’s in the money. A put option is similar, but it instead gives you the right to sell a stock at a set price and time. As an option holder effectively controls 100 shares for every single call option they own, the leverage it provides can make it very attractive for investors.

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If You Want to Know What Stock Is Set To Skyrocket, There Are Options

WHAT DO NIKE INC., Raven Industries, and Fortinet Inc. have in common? They exemplify the predictive capacities the options market offers: Recent stock price spikes were preceded by certain telltale signs in the options market, according to data compiled by Bloomberg. Use the terminal to generate ideas for enhancing your portfolio and profit from ever-changing option trading trends.

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