How two ways? Atticus is telling the op his opinion is the stock will go down. So Atticus is saying to buy an option to sell at $14.40 in the future, and sell option to buy. So if someone buys a reason to sell, AND sells to someone the option to buy, they are not bullish.
Yeah, I thought it was obvious that I was recommending selling outright (first post) or shorting the Jan 2010 synthetic at ~14.40 to complete the conversion.
I couldn't agree more, which is why, now that he's seeing GREEN, the little piggie wants more and more and more and more! Actually I'm the only one call him a PIG. Greed is good, but only when you know what the hell you're doing (controlled greed), and he obviously does not.
Wow. I looked at his chart and read what he wrote but my mind instinctively replaced the word "put" with "call". It wasn't until I read your response that I even realized he was suggesting puts...yeah that would be the wrong thing to do. I personally might consider selling some January 20 Calls, but with Volatility so low right now you run the risk of wanting to buy those back later at a higher price should you decide you to keep the shares. On the other hand, going from $8ish to $20, plus the option premium is more than a good run and might be worth going ahead with. With a trailing stop also in place if the stock moves down to the stop he can get out with a good bit of profit on the stock and close the options position with a likely profit (once again assuming volatility isn't elevated when he needs to get out).
Atticus, you said a downside for interest rate in this quote, now it is not there. Can you explain that risk? I am not challenging what you say, I am asking that question because I know I do not understand everything with options.
14.10 last. 14.40 is looking better and better. I didn't want to make it more complex, and it's not important as the rho in the Jans can't hurt him. It's only an issue when gearing it up, and the OP wouldn't be trading in excess of his exposure. The skew is down and out, reflecting a lot of itm hedging (CCs) and outright demand for otm puts. The OP could sell some Jan 12.50C at ~90% vol, but I'd bet that realized vol will exceed 90 annualized. Jan vol:
Thank you for explaining! Your answer is very technical language for me right now, so it will take time for me to understand that answer. I will read it over again to make sense of what you are saying. I appreciate that you answered.
My perspective â Iâve been trading this one for the last couple of weeks My Opinion â Which admittedly isnât worth much â I would listen to Atticus You can always get back in RN