I have been working up a trade in $MDLZ and as part of this process I have reviewed the Option chains out to January 2015. I had this setup labeled as breakout play but wanted to get a glimpse at what others may be thinking.
Here are a few of the Option chains with some notable action:
Big footprints in June at the 28 Put strike. There are over 100,000 contracts sitting in Open Interest. Gulp. This makes me pause to rethink the breakout play strategy as I need to determine why traders are Bearish for June – and picked this strike.
For now I am going to sit idle on finishing up a trade setup – to see how price handles a test of the rising 50 SMA (looks like a test very soon).