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"Call stupid" play in MSFT, does not look so stupid now

Discussion in 'Market News' started by ForexLive, Oct 23, 2015.

  1. ForexLive

    ForexLive Forum Member

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    Now that's leverage I noticed a tweet from Benzinga a few days ago about how option volume surged in Microsoft October 30 calls. Here is the post. Anyway, the trade - as reported by Mike Khouw on CNBC's was a strategy called "call stupid". The trade involved buying 19,000 of the October 30th, 49 strike calls and leveraging that play with an additional 19,000 buys of the 50 strike calls. The cost as reported was $0.50 (for the pair). The dollar cost of the play equaled: 38,000 x 0.50 x 100 = $1,900,000.

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