RSI is at 89.99 as of the writing of this post. Here is a Daily chart:
With over-sized moves like this, I put these on my “to fade” list and just monitor with Price Alerts. I like to see volume go sideways, as well as pay attention to how far it is stretched from a key moving average (like the 50 SMA in this case).
My trade approach is this:
- Short stock at 23.75
- Long the June 25 Call at $1.30
This would be my normal approach to this. However, when reviewing the Option chains I noticed a very large trade in June:
This stock was at $11 in April, of 2013. LoL