Intraday Trade - MER

MER gapped up today based on news that GE buying over their lending unit and Temasek buying an equity stake. The stock is still a weak stock. However, with the coming holidays, the market tends to end positive. The stock went up more than $2.00. Then CNBC announced that Temasek is buying MER at $48 - a huge discount the current market price (about $57) then.

• Buy to open Jan 55 Put @$2.30 (when the stock is around $56.75)
• Sell to close @$3.60 (when the stock is around $53.81).
• Made 56.5% in less than 2 hours.

The Strategy:
Look out for weak stock that had gapped up but cannot justify its high price.

It is a good Christmas bonus.

- PersianCat04 (Millionaire-in-progress)