Sea of Opportunity's  Instablog

Sea of Opportunity
Send Message
Sea of Opportunity ( is a blog created by a group of options traders in San Francisco, CA. The mission is to analyze what the "big money" is betting on and evaluate the risk reward to see if the trade should be followed or not.
My company:
Sea of Opportunity
My blog:
Sea of Opportunity
  • Trade of the Day: Cerner April/June $100 long put calendar 0 comments
    Mar 14, 2011 6:44 PM | about stocks: CERN



    The Trade
    A trader sold 10,000 April $100 puts at $1.70, and bought 10,000 June $100 puts at $4.30 for a debit of $2.60 or $2,600,000.
    As you can see from the graph above, the long put calendar has unlimited risk and limited profit potential. The maximum profit potential is $6,125,869 at an underlying stock price of $100 at expiration. At this price level at expiration, the short puts would expire worthless, and the long puts would be in the money. The upper break even price level at expiration is $114.75.
    The line shown is the upper break even price level. CERN traded 23,904 contracts today compared to average daily volume of 994. The 52-week range is a low of $72.05 and a high of $104.99. CERN closed today at $103.53, nearly closing at all time highs. It's interesting to note that CERN will report earnings in late April.
    Cerner Corporation is a supplier of healthcare information technology solutions, healthcare devices and related services. These solutions are licensed by approximately 9,000 facilities globally, including more than 2,600 hospitals; 3,500 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities, and 1,600 retail pharmacies. Cerner Solutions optimize processes for healthcare organizations.

    Stocks: CERN
Back To Sea of Opportunity's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.