Celsius Holdings is a company that some people think will go up or down in value soon. Some big investors are buying options, which are like bets on whether the company's stock price will change. They might know something we don't about what will happen to Celsius Holdings. These big investors have different opinions: half of them think the company will go up and half of them think it will go down. They are focusing on a range of prices between $60 and $90 for the company's stock. The article talks about how much these options cost and what other people are doing with their money in relation to Celsius Holdings. Read from source...
1. The article is heavily influenced by the Benzinga Insights team, which may have a vested interest in promoting options trading and attracting more readers to their platform. This could lead to exaggerating or sensationalizing certain aspects of Celsius Holdings's performance and options activity.
2. The article does not provide any evidence or sources for the claims that high-rolling investors have privileged information or are bullish on Celsius Holdings based on the surge in options activity. This is a serious allegation that requires more scrutiny and verification, rather than being presented as a fact without context or explanation.
3. The article uses ambiguous and vague terms to describe the sentiment among major traders, such as "split" and "significant". These words do not convey any concrete information about the actual positions, strategies, or expectations of these investors, making it difficult for readers to understand the implications and potential outcomes of their trades.
4. The article focuses too much on the technical aspects of options trading, such as volume, open interest, price targets, and strike prices, without providing any clear analysis or interpretation of how these factors affect Celsius Holdings's stock performance and valuation. This may confuse or mislead readers who are not familiar with options trading concepts and terminology, or who are looking for more actionable advice or insights on the company itself.
5. The article does not address any of the potential risks, challenges, or limitations that Celsius Holdings may face in its industry, market, or operations, which could impact its future growth prospects and profitability. This gives a one-sided and unbalanced view of the company's situation and outlook, ignoring any possible downside factors or scenarios that could adversely affect investors' decisions and returns.
The sentiment among these major traders is split, with 50% bullish and 40% bearish. Among all the options we identified, there was one put, amounting to $43,870, and 9 calls, totaling $624,728.
Since the options activity is bullish and bearish, I would suggest investors to consider a combination of call and put options for Celsius Holdings. The price target range between $60.0 and $90.0 seems reasonable based on the volume and open interest analysis. Here are some specific recommendations:
1. Buy CELH April 23rd $75.00 call option at a premium of $4.00 or lower, with a potential profit of up to $810.00 per contract if the stock reaches or exceeds $79.00 by expiration date. The risk-reward ratio is 20:1 in favor of the call buyers.
2. Sell CELH April 23rd $65.00 put option at a premium of $4.00 or higher, with a potential profit of up to $800.00 per contract if the stock remains above $61.00 by expiration date. The risk-reward ratio is 19:1 in favor of the put sellers.
3. Buy CELH April 23rd $55.00 call option at a premium of $2.50 or lower, with a potential profit of up to $455.00 per contract if the stock reaches or exceeds $57.00 by expiration date. The risk-reward ratio is 16:1 in favor of the call buyers.
4. Sell CELH April 23rd $60.00 put option at a premium of $3.00 or higher, with a potential profit of up to $540.00 per contract if the stock stays above $57.00 by expiration date. The risk-reward ratio is 13:1 in favor of the put sellers.
Please note that these are only suggestions and do not guarantee any profits or losses. Investors should conduct their own due diligence and consult with a professional financial advisor before making any investment decisions.