$MSFT buyout of $LNKD created some massive gains for CALL options.
One particular strike surged over 200,000% yesterday. From $.02 to over $43 each. There was a late trade of these options on Friday for roughly $300. The same trade yesterday morning was worth almost $700,000. Yes $300 to $700,000 in less than a full trading session.
Today’s trading session was pretty quiet, as we did not have many big movers during the day. LNKD was the big story of the morning as it was bought out by MSFT for $196 a share, a move that I think bailed out LNKD from lower prices. The stock has not shown consistently strong earnings and most recently tanked 50% on bad earnings. For MSFT to pay up to 100% higher than where it stood a few months ago I think is absurd. Elsewhere, we saw the VIX have a tremendous day, in which I was able to capture some of the move late in the afternoon (by trading UVXY). Besides that there were not any big intraday moves rather a few fades on big cap tech names, specifically TSLA and NFLX. I will go over 3 of my trades today, and why I did them. I will then discuss what I am watching for tomorrow’s sessions.