A company called Benzinga wrote an article about how people are trading options (which are a way to bet on the price of something going up or down) in another company called Linde. They say that smart traders try to learn as much as they can and watch many signs to make good choices. The article also talks about some tools and news that can help people trade better. Read from source...
The article "Unpacking the Latest Options Trading Trends in Linde" is a typical example of poor journalism that tries to manipulate readers into making decisions based on incomplete or misleading information. Here are some of the major flaws I found in this article:
1. The title itself is sensationalized and misleading. It implies that there are some new and unique options trading trends specific to Linde, but the article does not deliver any evidence for such a claim. Instead, it merely summarizes some recent events and statistics related to Linde's stock and options market without providing any original insights or analysis.
2. The article relies heavily on uncredited sources and anecdotal evidence. For example, it cites "analysts" who are not named or quoted, but only referred to as anonymous "sources". It also uses vague terms like "investors", "traders", or "experts" without giving any details about their background, credentials, or affiliation. This makes the article seem biased and unreliable, as it does not provide any verifiable sources for its claims.
3. The article contains several factual errors and inconsistencies. For example, it states that Linde's stock price dropped by 10% on Monday, but then contradicts itself by saying that the options volume was higher than usual. It also mentions that Linde is a leader in the industrial gas industry, but does not explain how this affects its options trading performance or why it should matter to readers. These errors and inconsistencies undermine the credibility of the article and suggest that the author did not do proper research or fact-checking before writing it.
4. The article uses emotional language and appeals to fear, greed, or curiosity without providing any rational basis for its claims. For example, it says that Linde's options trading trends are "unpredictable" and "volatile", but does not define what these terms mean or how they affect investors. It also warns readers about the "risks" of options trading, but does not explain how to mitigate them or what benefits they can offer. This makes the article seem like a clickbait piece that tries to scare readers into buying something or clicking on more links rather than educating them about options trading in Linde.
Bearish
Reasoning: The article focuses on the risks and potential rewards of options trading in Linde, a chemical engineering company. It mentions that astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. This implies that options trading is not for the faint-hearted and requires constant vigilance and expertise to navigate the complexities of this financial instrument. Additionally, the title "Unpacking the Latest Options Trading Trends in Linde" suggests that there are new developments or trends in the market that may be challenging or threatening to traders who want to invest in Linde's options. Therefore, the sentiment of the article is bearish as it highlights the potential AIgers and difficulties associated with options trading in Linde.
- Buy LINDE Mar20 175 Puts at $3.90 or lower
- Sell LINDE Nov20 160 Calls at $1.85 or higher
- Risk/Reward: potential gain of up to 40% if LINDE drops below $160 by November expiration date