bear put spread on JEF

Discussion in 'Options' started by Georgi90, Nov 7, 2011.

  1. Georgi90

    Georgi90

    sell nov9 put buy nov10 put limit order .25 cent debit
    If there is a downgrade from another credit rating firm, i expect a selloff in the stock. If there isn't any downgrade, until Friday pre-market, I am gonna close the position and start looking for a negative vega spread, i preffer a butterfly. I think the situation in Greece doesn't matter any more for that stock at this time.
    Please give your opinions about the way one can trade this.

    I have also been thinking of taking some "units" here, the JAN12 6 puts ( because they are the most liquid out there ), but the iv is still too much elevated, right at the moment they are priced at 144 iv. I think its gonna slide in a day or two if nothing else happen.
     
  2. Georgi90

    Georgi90

    I should have predicted the move up the will try, who the f^ck is bullish on this Monday.
    Still the nov10 puts are trading higher than what i have paid for them, the iv is up a lil bit.