Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 6, 2013  Fri 11:37 AM CT

WDAY: SEE CHART GET CHAIN FIND STRATEGIES
A long-term trade is looking for cloud-computing company Workday to make a big move higher or lower in the next two years.

optionMONSTER's Depth Charge system detected the purchase of 5,000 January 2016 40 puts for $2.60 today, dominating WDAY's option volume and already topping its total daily average in the last month. The previous open interest at that strike was just 5 contracts, so this is clearly a new position.

Just after the puts were bought, a block of 40,000 WDAY shares was bought for $82. The combination of stock and options creates a delta-neutral position that is looking for a big move up or down in the shares and/or for volatility to be higher than that implied by the option. (See our Education section)

WDAY is down 0.48 percent to $81.43 this afternoon. The stock has been testing resistance at $82 since closing above that price back in mid-September. It bounced off support at $72 two weeks ago. 
Share this article with your friends


Related Stories

WDAY

Cramer: The new market reality

April 17, 2014

All it takes is one breakdown in one space, and all the names in it get hammered. Why? Look no further than the algo traders.

WDAY

Workday gets a vote of confidence

April 14, 2014

One trader apparently believes that losses will be limited in shares of the human-resources service company in coming weeks.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER