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Hawk’s Nest

Beaten Down Software Name Sees Bullish Trade into Lows

by | Jul 15, 2022

Unity (U) bull risk reversals trading 500x in January as the $25 puts sold to open at $4.30 and January $35 calls bought at $7.60 offers. Net debit around $3.30. The stock has been beat up this year and this week gapped lower under monthly value area on the weakness in the software sector but a confident long term bull stepping in willing to be long at $25 into year but since they bought the calls are a net debit this shows more bullish bias than just the naked put sale would. U has been forming a sloppy basing pattern since the May lows at 29 and this weeks low near 31.50 a decent level to trade against.