Interesting how this is up on such a negative day, perhaps on the DNA news. Trajan, I would be interested to know how you are playing this.
So far I have bought a 4 lot of 5c for .60. The stock is hard to borrow so have done anything to hedge. I would like to sell some of those July17c for .40, that's my order. It gives me some long gamma to scalp. The other cheap play on the board are the Oct 7c, nearly pulled the trigger this morning but the stock fell back to quickly. At the very least, I nead to find some short deltas. Who's nickling me on those July 7cs?
The beauty of this is, that ups and downs don`t hurt you so much and so often. My biggest concern in writing was always when to get in and when to get out, but it`s no longer an issue.
It wasn't neccessarily what I had planned but how things worked out. There is pretty big volume on the July 5p bid. It would also be the juiciest bid to hit to sell premium. I would need to find some short deltas first.
defiantly an advantage being a seller in that time works against the buyer, even if your timing is slightly off. But, it also is a good psychological advantage when grouped with other long and short positions as your income and equity curve stays a little more stable. Plus I like not having to be glued to the computer. I sold some long positions on Thursday, and bought calls on Friday on Qs. Figure is may be worth a dip buy at the 200ma on many indexes, unless of course we break out which I am not banking on.