The article talks about Viking Therapeutics, which is a company that makes medicines. Some people think the price of their medicine will go up and some think it will go down. These people can buy or sell options, which are like special tickets to bet on the future price of the medicine. The article shows what these people are doing with these tickets and what experts think about the company's value. Read from source...
1. The title of the article is misleading and sensationalist, implying that there is a high level of options activity for Viking Therapeutics, when in reality it only represents 40% and 46% of investors with bullish and bearish expectations respectively.
2. The article does not provide any context or background information on the company or its products, which makes it difficult for readers to understand why there is so much interest in the stock options.
3. The predicted price range of $20.0 to $100.0 seems arbitrary and unsupported by any data or analysis. Why would investors target such a wide range of prices? What are the factors that could influence the stock's movement within this range?
4. The chart showing the volume and open interest development is confusing and unclear, as it does not specify what time frame or date range it covers, nor how it relates to the options trades mentioned in the article.
5. The analyst downgrade from Buy to Hold seems inconsistent with the rest of the information presented, which suggests a high level of interest and activity in the stock. Why would an analyst lower their rating at a time when there is so much speculation and trading? What are their reasons and assumptions?
6. The section on options trading risks and rewards is generic and uninformative, as it does not provide any specific guidance or tips for investors who want to trade options in Viking Therapeutics. How can they minimize the risk and maximize the profit potential? What are some strategies or indicators that they should follow?
7. The article ends with a promotion for Benzinga Pro, which seems irrelevant and intrusive, as it does not add any value to the readers who are looking for information on Viking Therapeutics's options activity. Why is this service being advertised in an article that should focus on providing useful insights and analysis?
1. Buy call options with a strike price of $40 or lower, as this would allow you to benefit from the potential upside of Viking Therapeutics if it reaches above $60 in the next few months. This option is less risky than buying the stock outright and has a higher profit potential if the price increases significantly.
2. Sell put options with a strike price of $40 or lower, as this would allow you to collect premium income from those who are bearish on Viking Therapeutics and want to protect their downside. This option is less risky than selling the stock short and has a higher profit potential if the price remains stable or increases.
3. Buy put options with a strike price of $80 or higher, as this would allow you to hedge your long position in Viking Therapeutics or reduce your exposure to downside risk in case the stock price drops significantly. This option is less risky than buying the stock outright and has a lower profit potential if the price decreases moderately.
4. Sell call options with a strike price of $100 or higher, as this would allow you to collect premium income from those who are bullish on Viking Therapeutics and want to take advantage of the upside. This option is less risky than selling the stock short and has a lower profit potential if the price increases moderately.
5. Use a combination of technical and fundamental analysis, as well as market sentiment indicators, to determine the best entry and exit points for your options trades. For example, you can use moving averages, relative strength index (RSI), Bollinger bands, and other tools to identify trends, momentum, and reversals in the price action of Viking Therapeutics. You can also monitor the news and earnings reports of the company, as well as the ratings and recommendations of analysts, to get a sense of the underlying value and growth potential of the stock.