Zillow is a big company that helps people buy and sell houses. Some rich people think that the price of Zillow's shares will go down, so they are betting money on it. They use something called options trading to do this. Options trading lets you guess if a share's price will go up or down, and if you guess right, you can make more money. The rich people who think Zillow's shares will go down made some big bets using options trading. They hope that they are correct and they can earn more money when the share price falls. Read from source...
1. The author claims that "financial giants" made a bearish move on Zillow Gr, but does not provide any evidence or sources to support this claim. This is a vague and unsubstantiated statement that lacks credibility and objectivity.
Bearish. The article discusses how financial giants have made a bearish move on Zillow Gr by analyzing options history and revealing unusual trades.
- The following recommendations are based on my analysis of the article and other factors that may affect the market sentiment and price movements of Zillow Gr options. These recommendations are not guaranteed to be profitable or accurate, and should be used for informational purposes only. They are subject to change at any time without notice.
- Recommendation 1: Buy a bearish call spread on Zillow Gr with a strike price of $47.5 and a strike price of $30. This trade involves selling a call option at $47.5 and buying a call option at $30, with the same expiration date. The net credit received from this trade is $12 per contract, which represents the potential profit if Zillow Gr closes below $30 or above $47.5 on the expiration date. The risk is limited to the difference between the strike prices minus the net credit received, which is $17.5 per contract. This trade has a breakeven point of $48.5 per share, and offers a potential return of up to 30% if Zillow Gr closes at or below $30 on the expiration date.
- Recommendation 2: Buy a bull call spread on Zillow Gr with a strike price of $40 and a strike price of $30. This trade involves buying a call option at $40 and selling a call option at $30, with the same expiration date. The net debit paid for this trade is $5 per contract, which represents the potential profit if Zillow Gr closes above $40 or below $30 on the expiration date. The risk is limited to the difference between the strike prices plus the net debit paid, which is $9 per contract. This trade has a breakeven point of $35 per share, and offers a potential return of up to 182% if Zillow Gr closes at or above $40 on the expiration date.
- Recommendation 3: Buy a bear put spread on Zillow Gr with a strike price of $47.5 and a strike price of $35. This trade involves selling a put option at $47.5 and buying a put option at $35, with the same expiration date. The net credit received from this trade is $12 per contract, which represents the potential profit if Zillow Gr closes above $35 or below $47.5 on the expiration date. The risk is limited to the difference between the strike prices minus the net credit received, which is $17.5 per contract. This trade has a breakeven point of $39.5 per share, and offers a potential