High volatility

I did mange to sell 10 of July 5cs for 1.10. So, my position is a short time spread. +10 jun 5c/-10 july 5c for a .50 credit.

 

anybody doing anything in DNA? The seems a few things there.

 

I've been watching from a safe distance. Although the spread that you set up with Bpur would seem appealing if Volatility dies down in the next few days, or the rally falls back.

Do you ever put on (no pun intended) the same type of spread with Puts? Seems you could buy the June and sell the July for a similar credit.

 

Puns are allowed. I would do it with puts. It's the same spread. By buying the July 5p and selling the June 5p, I have the position sometimes refered to as the Jelly Roll. I would be long synthetic stock with long call/short put with Junes and short synthetic stock with the short call/long put in the Julys. In such a position, the difference in price between the two different months synthetics is the cost of carry. Right now, the put time spread market is .25 bid at .55. If I could leg into the put spread for .30, I would essentially close down the position with a profit of .20.

In DNA, I did something different. I have a 1 by 2, buying 2 of the Jul 60c and selling 1 of the june 55c. It was done for a net debit of .05. Now when I say 1 by 2, I mean literally that was all I could get (delete pun) executed was 3 contracts at prices I liked. I think it was done for something like 13 points of vol edge.

 

I also sold 10 of the july 7c for .40, exactly at the close.

 

Trajan,

Thanks for the idea on the Jelly Roll and the 2+1. Sold a few puts myself and hedged a short position with some calls. Other than that will have to wait to see what the charts uncover tonight.

Will be rather interesting to see if the bulls step back in tomorrow.

 

I don`t know how it happened, but had not received recent msgs.


Few new ones for today are: CPN, RMBS, USG
But since I prefer to write calls, I need to wait a little hoping for highly volatile up day

 

I decided for IGEN (sold for 1.9) and BPUR (.65) . Opening was easier than I thought.
Hedged with stocks. Now let`s hunt for others.

 

So was that you who beat me to that .65 bid in BPUR?

 

Why is IGEN's IV so jacked? Is there impeding news on it? From looking at the chart and on Ivolatility.com it doesn't seam justified.