This stock has had a steady decline over the past year and from a technical stand point look like a great shorting opportunity. The open interest is much greater on the puts than the calls. So I decided to buy a DNA put strike price 70.00 exp: July 2007. I would like some second opinions.
u must be chartist...but even most chartists atleast glance at its fundamentals. i consider myself a beginner so beware of my advice!.... did u realize DNA has earnings coming up? and if you looked at its earnings history and growth estimates - you will see that a negative earnings surprise is unlikely. Besides its a great company with very strong fundamentals.
but if you look closely at the timing of insider transations, you can see that the insiders have been selling their shares right before the price is about to drop - its perfect. (too bad they don't release this info right after it happens) and there hasn't been any selling for the past one month and it does have a decent amount of insitutional ownership - so all good signs!
How do you know the OI in the puts where buy to open in the puts? You simply have no way of knowing. OI is not a good tool for that.