Some big people who buy and sell things made bets that Illumina, a company that helps study DNA, will not do well. They used special tools called options to make these bets. These big people think the price of Illumina's stuff might be between $95 and $200 in the next few months. Read from source...
- The title is misleading and sensationalized, implying that large investors are making significant bets on Illumina options when in reality they are mostly selling puts or buying calls with a low strike price.
- The article does not provide any evidence of the market whales' intentions or strategies, nor does it explain how their recent trades affect the stock price or future performance of Illumina.
- The analysis of options history is superficial and based on arbitrary thresholds of unusualness, bullishness, and bearishness without any clear criteria or context.
- The predicted price range is unrealistic and arbitrary, based on a simple average of the high and low values from the last three months, without considering any technical, fundamental, or market factors that could influence the stock price.
There are several potential investments that could be considered based on the article, but I will focus on three main options: ILMN itself, puts on ILMN, and calls on ILMN. Each of these options has its own advantages and disadvantages, as well as different levels of risk and reward. Let's examine them in more detail below.