ACHR Jan 2027 $3 Calls: A Discount Dip or Something Else?

 

Traders, listen up! We've got our eyes on some interesting action in ARCHER (ACHR) calls expiring in January 2027. Specifically, the $3 strike calls are currently priced at a discount compared to both out-of-the-money (OTM) calls with higher strike prices and in-the-money (ITM) calls with lower strike prices.

This is a bit unusual. Normally, calls with a strike price closer to the current stock price tend to be more expensive than those further out. So, what's going on here?

There are a couple of possibilities:

• Market Mispricing: It's possible this is a temporary glitch in the options pricing. The market might be overlooking something, creating a short-term buying opportunity for savvy traders.
• Change in Investor Sentiment: A shift in how investors view ACHR's future prospects could be affecting the price of these calls. Perhaps there's some news or rumors that haven't been fully priced in yet.
• Strategic Play by Options Whales: Large traders, sometimes known as whales, might be accumulating positions in these specific calls for their own reasons. Their buying activity could be driving the price down temporarily.

Here's what we recommend doing before diving in:

• Do your research: Understand what's driving ARCHR's current stock price and what factors could affect it between now and January 2027.
• Analyze the greeks: Look at the delta, gamma, and theta of these calls to understand their sensitivity to price movements and time decay.
• Consider the alternatives: Compare the pricing of these $3 strike calls to other ACHR calls with different strike prices and expiration dates. See if the discount holds up.

Remember, options trading can be complex and carries significant risk. This is not financial advice. Before making any trades, do your own due diligence and consider consulting with a financial advisor.

Stay tuned! We'll be keeping a close eye on ACHR and these $3 strike calls. If we see any major developments, we'll be sure to share them with you.

Disclaimer: I am not a financial advisor and this is not financial advice. Please consult with a financial advisor before making any investment decisions.   

MSN Money for Trading Intel (A Quick Share)

Next to StockTwits I like MSN Money and Start Money as daily insights and updates. Below is one that popped up on my feed this morning...  Having this type of push information helps generate awareness of different market and mixes to build your shark trading senses.

 Outperforming Asian ETFs List Details - MSN Money

PSEC: Our Under-the-Radar Gem Delivers

 

Remember when we highlighted PSEC as a potential value play? Well, it seems our hunch paid off!

Since our initial recommendation, PSEC has continued to impress. Not only has it delivered on its dividend promise, but the stock price itself has also seen a significant uptick.

A Winning Combination

• Sub-Five Dollar Entry: Our initial recommendation came when PSEC was trading below $5.
• Dividend Delight: The consistent dividend payments have provided a steady stream of income for our investors.
• Price Appreciation: PSEC's recent price appreciation has further sweetened the pot. With the stock closing at $5.55, we've seen a substantial return on our investment.

A Testament to Value Investing

PSEC serves as a reminder that sometimes, the best opportunities lie in undervalued stocks with solid fundamentals. By identifying and capitalizing on such opportunities, we can achieve significant returns.

Have you considered adding PSEC to your portfolio? Share your thoughts in the comments below!

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.   

CRISPR: The Gene Editing Shark with Hidden Profits (and How to Catch Them)

 

Calling all risk-aware Sharks! Are you looking to snag some serious value in the biotech sector without getting chomped by volatility? Then set your sights on CRISPR!

CRISPR (CRSPR), the revolutionary gene-editing company, has been making waves in the scientific community. But for us at Sharkwater Trading, the waves we're interested in are the ones in the stock market – and right now, CRISPR is creating some interesting currents.

Why CRISPR is a Value Shark's Dream

CRISPR's stock price has seen its share of ups and downs. However, the company's potential in the gene-editing field is undeniable. This technology has the power to revolutionize medicine, agriculture, and countless other industries. As this potential unfolds, CRISPR's stock price is likely to follow suit.

The Beauty of Low-Cost Entry

The current price point of CRISPR presents a fantastic opportunity for value investors. By entering the game now, you're getting in on the ground floor of a potentially groundbreaking company at a relatively low cost.

But here at Sharkwater, we don't just buy and hold – we actively manage our portfolios to maximize profits. That's where our two favorite options strategies come into play: cash-secured puts and covered calls.

Double Down on Value with Cash-Secured Puts

Cash-secured puts allow you to collect premium income while essentially getting paid to wait for the stock price to rise. Here's the plan:

• Sell Cash-Secured Puts: Find a strike price you believe is below CRISPR's intrinsic value. Sell put options at that strike price while simultaneously tying up a specific amount of cash (equal to the number of shares you're willing to buy at that price).
• Collect Premium: You'll immediately receive a premium for selling the put options. This is essentially pure profit if the stock price stays above your strike price by expiration.
• Assignment Advantage: If the stock price falls below your strike price and you get assigned the shares, you've bought them at a discount you were comfortable with beforehand.

Covered Calls: Turn Volatility into Income

Once you own those CRISPR shares (through assignment or by buying them outright), covered calls become your secret weapon. Remember, CRISPR is likely to experience some volatility as it continues to develop. Here's how to use that volatility to your advantage:

• Sell Covered Calls: Sell call options with a strike price higher than your cost basis (the price you paid for the shares). This allows you to collect additional premium income.
• Double-Profit Potential: If the stock price rises but stays below your strike price by expiration, you keep both the premium and your shares.
• Profit Even if Assigned: If the price surges past your strike price and your shares get called away, you've still profited from the initial purchase price plus the premium income.

Remember, Sharks:

This approach isn't a get-rich-quick scheme. It's about strategically managing risk and generating consistent income while you wait for CRISPR's long-term potential to unfold. By combining low-cost entry, cash-secured puts, and covered calls, you can turn CRISPR's volatility into your own personal feeding frenzy.

Do you already have a position in CRISPR, or are you waiting for the right opportunity to strike? Share your thoughts and strategies in the comments below!

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.