Big rich people are betting that a company called Lam Research will not do well in the future. They are buying something called "puts" which lets them sell the company's stock at a certain price. If the stock goes down, they can make money. If the stock goes up, they lose money. Read from source...
- Title: "Check Out What Whales Are Doing With LRCX"
- The title implies that the article is about identifying large investors' trading activities, but the body of the text focuses mainly on the options trades of unidentified investors.
- The article claims that "investors with a lot of money to spend have taken a bearish stance on Lam Research LRCX," but it does not provide any evidence or reasoning for this statement. It also does not explain how the options trades mentioned in the body of the text are related to the overall sentiment of these investors.
- The article frequently uses vague and misleading language, such as "we noticed this today," "when something this big happens with LRCX, it often means somebody knows something is about to happen," "this isn't normal," "it's evident that the major market movers are focusing on a price band between $760.0 and $1055.0," and "it's approaching oversold." These statements do not provide any clear or actionable information for readers.
- The article includes a chart that supposedly shows the "development of volume and open interest of call and put options for Lam Research's big money trades within a strike price range of $760.0 to $1055.0 over the last 30 days." However, the chart does not have any labels, axes, or legends, making it impossible to interpret or understand the data.
- The article ends with a section titled "About Lam Research," which provides irrelevant information about the company's business and market position. This section does not add any value to the article or help readers make informed decisions about their investments.
- The article does not cite any sources or provide any references for the information it presents, making it difficult for readers to verify the accuracy or reliability of the content.
- Long LRCX 140 call (buy-write strategy): Benzinga's options scanner spotted 140 call options for Lam Research with a total amount of $637,200. This is a bullish signal as it suggests investors are betting on the stock's price to rise in the next few months. The risk-reward ratio is favorable for this trade as the potential profit is limited to the premium received for writing the 140 call, while the risk is unlimited if the stock falls below $140. However, this risk is mitigated by the fact that LRCX has a history of steady performance and the call options are slightly out of the money.