bear put spread on JEF

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

  1. 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


    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.