TAL - simple dd

I’m going to be watching TAL for the next few weeks testing a theory targeting the Nov 19 options chain.

Options list
5 - oi: 8,933 volume: 269
5.5 - oi: 10,465 volume: 1,300
7.5 - oi: 57,378 volume: 42,815
10 - oi: 43,250 volume: 39,722

I’m looking for a close above 5.5 to add some small positions. If it runs and closes above 7.5 I think it could have potential for a breakout. There are some speed bumps. It has high float: 441.48M and is a Chinese stock. In the context of their current market state could be extremely risky. The OI is so high it’s hard to ignore but those other factors could very well decrease the likelihood of a breakout.

I currently don’t hold any positions but will be following it closely watching for a close above 5.5 to add some small positions then increase if it closes above 7.5. not financial advice.


Being that this is a Chinese stock, I’m personally going to stay away from this as it brings too much uncertainty for me


Keep in mind that China has outlawed for-profit tutoring. That’s why TAL and EDU crashed so hard in July. If China relaxes that policy, these stocks could bounce back up. Right now it looks like they are going to be forced to turn into nonprofits.