ITG Call Option Trade Alert

  • Stock: Oshkosh Corp (OSK)
  • Current Price: $76.78
    • Trade: Buy October Week 3 (expires October 18, 2019) $75 Call.
    • Trade Type: Market Current Ask: $7.30

OSK has dropped off of a 52-week low since the beginning of the month at around $82.50 to its current price. That’s a drop of a little less than 10% from that point, but in the last couple of days the stock has bounced off of support at around $75 and looks to be rallying. This could be a pullback within the stock’s intermediate upward trend to set a new high, but even if it isn’t, the range between the stock’s current price and top-end resistance, along with relatively close support sets up an interesting opportunity to work within what is starting to look like a consolidation range. Total upside: $5.72 per share.

  • Major support is around $75. Total distance from stock’s current price: $1.78 per share. Set stop loss at break below $75.
  • Option Delta is .592. Estimated stock move from current price is $5.72, so the estimated positive option price move is $3.38. Return: 46.3%
  • Estimated negative option price move is $1.05. Potential Loss: -14.4% Reward: risk for the trade is 3.2:1.

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