Just an amazing run-up the last few years for AZO. It has been impervious to downside, until now.
Almost anyone who fought this chart by going short, or buying puts, save for a few brief pull backs, has lost. Today the remaining bearish traders on AZO finally hit paydirt.
Trading out of the money stock options, you can be a loser and still win. Had you traded AZO puts 5 times for a loss, today's action would have made up for your losses and still left you with a large profit. In baseball where you are paid to fail 70% of the time, you would be released if you consistently went 1 for 5. With stock options that one hit could make your year, or your life.
The AZO $380 puts went from $.60 to $16.60 today. That's $600 into $16,600. If you ask me it was well worth the wait.