Tuesday, October 1, 2013

$CERN (Cerner Corporation.) Case Study: Options Volume Analysis (OVA™). Smart Money Make $1.05 million in 34 Days and just before Cerner announced a partnership agreement. Is this a coincidence? I don't think so ;)

Let's start it simply, $CERN has averaged 2,638 options traded per day over the last 3 months



Now let's take a look at the Options Chain from 2013.08.23
So $CERN closed at $47.44 and check out the volume in the Oct 50 calls: 5,713 calls traded with OI(open interest) only 332 and most of them were bot at offer price around $0.65 - $ 0.90 ( avg. = $0.77)


The following day OI rose to 4,898, meaning that  4,898-332 = 4,566 calls were bot to open at $0.77 for $350k "investment".


We can see those Oct 50 calls are closed at $3.10 turning that $350k investment into a $1.4M or about $1.05M profit (300%) in 34 days.



 What a coincidence! Stocks went up after Cerner had announced they signed a partnership agreement. ;)



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