Software Stock Rewards Put Traders With Lofty Profits

The equity is tumbling even lower today

Deputy Editor
Nov 9, 2022 at 1:07 PM
facebook X logo linkedin

Subscribers to our Schaeffer's Weekly Options Countdown service scored a 200% profit with our recommended Splunk Inc (NASDAQ:SPLK) November 4, 2022 87-strike put in just over a week. Now seems like a good time to share our reasoning for initiating this short position.

When we made our recommendation on Sunday, Oct. 30, the security was falling into its declining 50-day moving average. That trendline was also home to the $85 level -- five times SPLK's initial public offering (IPO) -- and the site of its March, June, July, and September's lows. Plus, Splunk stock was down 28% year-to-date and more than 50% year-over-year, indicating the shares had little technical support.

At the time of our recommendation, options traders were brushing off the stock's weak price action, and favoring bullish bets. This was per SPLK's Schaeffer's put/call open interest ratio (SOIR) of 0.45, which stood higher than just 4% of annual readings and was evidence of a put-bias amongst short-term traders. What's more, the top 11 open interest positions were calls, and 154,000 calls were on deck across all expiries versus just 69,000 puts. 

SPLK Chart November 092022

The security is down 4.3% at $72.64 at last check, pulling even further away from the aforementioned 50-day trendline. While SPLK is holding above its annual lows, the equity is now 58.5% lower year-over-year, with a 37.9% year-to-date deficit to boot. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI