SHAK Archives - Cboe Blogs

  • Trader Talk | Trade Ideas | Apr 27, 2016, 11:15 AM

    Shaking down the $SHAK

    Shaking down the $SHAK

    A trading friend of mine, who wishes to be called "Chip" in the telling of this story, is clamoring for me to tell this story on his behalf.  The brief but detailed saga is basically a chronicle of Chip's studious, calculated transactions that allowed him to benefit from a particular company's stock price trajectory over the one week span of time covered by this case study. It's a tale of Shake Shack, puts and calls, and of cash raked over the barrelhead into Chip's sweaty, eager hands. On[...]

  • Trader Talk | Education | Aug 19, 2015, 2:44 PM

    Unusual Option Pricing in SHAK Explained

    Unusual Option Pricing in SHAK Explained

    After what seemed like a long wait for some anxious traders, options on Shake Shack (SHAK) commenced trading last week. The chart below is a depiction of weekly price action in SHAK since the company went public early this year.   I can see why traders were clamoring for the listing of SHAK options. Something in the SHAK option arena that has gotten a lot of attention is what appears to be a breakdown in put-call parity. Using options, a trader can create a synthetic long position in SHAK[...]