So, this is an article that talks about some people who have a lot of money and they are betting that a toy company called Hasbro will not do well. They use something called options trading which is a way to make more money if you guess right or lose some money if you guess wrong. The people who write the article think that these rich people might know something that others don't, so they are telling regular people like us to pay attention to what is happening with Hasbro. Read from source...
- The article title is misleading and sensationalist, implying that there are some new trends in options trading for Hasbro when the data is based on a single day of activity.
- The article does not provide any context or historical analysis of the previous trends or patterns in options trading for Hasbro, making it difficult to assess the significance and validity of the current data.
- The article relies heavily on anonymous sources and speculation, claiming that high-rolling investors have privileged information without providing any evidence or verification. This creates a sense of mystery and fear among retail traders who may feel pressured to follow the bearish sentiment.
- The article presents conflicting views from different analysts without clarifying their credentials, methodology, or track record, making it unclear how reliable or credible they are. For example, one analyst from JP Morgan holds a Neutral rating for Hasbro while another from Stifel lowers its rating to Buy with a new price target of $64. These contradictions create confusion and uncertainty among readers who may not know which source to trust or follow.
- The article ends with a promotional pitch for Benzinga Pro, trying to persuade readers to subscribe to their service by claiming that they will get real-time options trades alerts, without disclosing any information about the cost, benefits, or drawbacks of using their service. This is an unethical and manipulative tactic that may mislead unsuspecting readers into making poor investment decisions.
The sentiment among these major traders is split, with 12% bullish and 87% bearish.
1. Short Hasbro with a target price of $54 or lower, based on the JP Morgan analyst's neutral rating and the bearish sentiment among major traders. This strategy involves selling shares short and potentially profiting from a decline in the stock price. The risk is that the stock price may rise instead of fall, resulting in losses for the short seller.
2. Buy puts on Hasbro with a strike price around $64 or lower, based on the Stifel analyst's lowered rating and the high percentage of bearish sentiment among major traders. This strategy involves purchasing options contracts that give the holder the right to sell shares at a specified price (strike price) within a certain time period. The potential profit is limited to the premium paid for the option, but the risk is limited as well since the most one can lose is the premium paid.
3. Sell calls on Hasbro with a strike price around $54 or higher, based on the JP Morgan analyst's neutral rating and the bullish sentiment among major traders. This strategy involves selling options contracts that give the holder the right to buy shares at a specified price (strike price) within a certain time period. The potential profit is limited to the premium received for the option, but the risk is also limited since the most one can lose is the premium received.
4. Hold Hasbro with a stop-loss order around $60 or lower, based on the consensus target price of $60.67 and the overall bearish sentiment among major traders. This strategy involves setting a price at which to sell the stock if it reaches that level, limiting the potential loss. The risk is that the stock may continue to rise despite the bearish indicators, resulting in missed gains or even losses if the stop-loss order is triggered.