DDS could be an interesting long trade in the context of an options expiration reversal.
DDS is a broken stock.
The Max Pain is at $65, which is totally reachable.
However, after the recent drop, large buyers have stepped in. These could be shorts covering though.
What is interesting is that after an initial push, the price reverted back down, but buying continued.
The big negative is that there is a large overhead supply of stocks and that the turnover is slow moving.
However, if the general market does not sink then DDS could revert to its Max Pain level.
The Pyramid data is of course negative.
The Stats show the entry level if we have more weakness on Monday.
Reply With Quote