Anyone playing CMG earnings?

Discussion in 'Options' started by candeo, Feb 15, 2007.

  1. candeo

    candeo

    Looking at either selling a horizontal or buying a credit ratio backspread.
     
  2. candeo

    candeo

    Ok, maybe I am thinking too much here. But what about this trade:

    - Buy 10 Mar/Feb calendar for 0.85 debit.
    - Sell 50 Mar /June calendar for 1.80 credit.

    I know, 10 of the Mar are sold and bought, but it is easier to look at it this way. Looks like the only way you would lose on this trade would be if IV increases, which is not likely to happen.
    Am I missing something here?