Here is an interesting calendar swap trade that presented itself on Friday. The stock is OTVI. It went out at 48.53. There is a really nice front month skew on this play. The Feb's are trading at a 30 pt premium to the back months. The front month vol is around 96 to 97 and the sept vol's are around 61 to 65. The play on Friday was to sell the Feb 50 calls at 96 vol, sell the Feb 40 puts for a 97 vol and buy the Sept. 50 calls for a 61 vol and buy the Feb 40 puts for a 65 vol. The breakevens at expiration on Friday are 39.80 and 54.40. That's a pretty sweat range. The spread went out on Friday 10.90 bid by 11.40 offer. The low of the spread was 11.20 and the high was 12.30. The probability of profit on this trade is 88%. The breakevens on this trade are outside the first standard deviation on both sides. The probability of the stock finishing below the low of the range is 1.2%. The probability of the stock finishing above the high end of the range is 10.5%. Also the stock is reporting earnings on Wednesday.