by Houghton and Atkeson 08/26/08
Micros Systems (MCRS) is scheduled to report earnings after market close on Thursday, Aug. 28. Today, 21 times the usual volume of options have traded already.
The action is almost all puts. For that matter, they are almost all MCRS Sept 30 Puts (MFKUF). MCRS is trading at just over $30 per share.
Short interest is close to all-time highs. The stock has rolled over after breaking up through its 200-day moving average on Aug. 11 and has now fallen back through its 200-, 50- and 10-day moving averages to the downside. Thursday looks to be Judgment Day for MCRS.
Ready to get in on the big-money options trading action? Sign up for your risk-free trial to Nick and Andrew's Big Money Options service, which gives you 2-3 specific trading recommendations a week, delivered by e-mail, PLUS timely profit alerts and trade updates.
Dawn Pennington
Read This Before You Buy Another Stock
A savvy stock position can start with a single options trade.
This technique can help you breathe a sigh of relief as it aims to relieve a 'choking' portfolio.
If you are familiar with buying calls and puts, we'll show you how to buy them even cheaper.
Anatomy of a Stock Option Ticker
Option tickers may look like a bowl of alphabet soup to you, but each letter means something.
You don't have to short stock to put a bearish bet on the table -- but the path to profits comes with different levels of risk.
