I have spotted something really unusual going on with the stock SPRD. It fell more than 20% last Friday in sympathy with RF Micro Devices. This just doesn't make sense since they compete in different markets and the fundamentals of SPRD are still very strong. The valuation of SPRD is currently ridiculously low. I believe there is some sort of manipulation at display here. I stand ready to capture this opportunity. Let's wait to see how this plays out. If everything goes as expected, I should be able to double if not triple my investment. Again, options trading is extremely risky and be prepared to lose everything if markets turn against you. "Markets can stay irrational longer than you can stay solvent."
A couple of caveats: SPRD's chart looks ugly, earnings date is a couple of months away, negative sentiment in China's economy, Europe headline risks.
I will set a side around 3k for this trade. Be ready!
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