Interesting Trade on My Radar: $NTAP

NetApp (NTAP) brings back fond memories. The Sharks buying these puts have proved themselves to me in the past... "the force" seems strong with this shark. It's a decent size trade, the question is will it work?


Unusual (Put) Options Activity 

NTAP has traded mainly on the put side today. Earnings are next week, February 12th. It appears someone is setting up for a sharp fall in stock on the announcement. Take a look at the Unusual Options Activity:

IT NTAP Options uoa data

FREE Data! Click the image to get Free Unusual Options Activity data with filters. This is the best place I could find for easy to navigate information. Please keep in mind that this is an affiliate link. I have vetted the site and I am a full subscriber. It's awesome!

Looking a bit deeper it seems like someone is actually rolling up their $55 Puts to the $60s as NTAP recently climbed with the market. That seems to make the $60 line the big bet. Notice the Risk-reward Breakeven price for this line: $53.79. This means the buyer of these puts thinks lower than $53.79. However, because he is making the decision to roll up, then we can also pinpoint a Target Stock Price between $50.14 and $53.79.

IT NTAP Options chain

A Couple of NTAP Charts

Here's the chart for you to look at. It could become an ABCD down move which would extend it lower to $47. This would coincide with the decision to buy March options as opposed to the February's... more time for a further move lower??

IT NTAP Stock chart

It definitely gets on my radar because we've followed these NTAP put buyers before. Take a look here:

NTAP Options Chart

BOOM!!! It doesn't get much better than that.

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About the Author Felix Frey

As a Wall Street Veteran, Options Expert, and founder of OptionsGeek, Felix has found a way to simplify options. He's on a mission to close the knowledge gap between the Top 1% and everyone else.