MDCO Options

Discussion in 'Options' started by ironchef, Jan 25, 2017.

  1. ironchef

    ironchef

    I need some opinions on the options of this underlying:

    Underlying price: $34.40
    Feb 17 2017 Call strike $35 has a bid/ask mid IV of 86% and $2.8
    Mar 17 2017 Call strike $35 has a bid/ask mid IV of 105% and $5.15

    HV(21) is about 40%

    A good option to go short?

    What is going on?
     
    #1     Jan 25, 2017
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  2. stepandfetchit

    stepandfetchit

    FYI: Earnings are due Feb 14th.
     
    #2     Jan 25, 2017
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    ironchef likes this.
  3. ironchef

    ironchef

    Why would anyone want to go long on an option with IV of 100% and HV of 40%?
     
    #3     Jan 25, 2017
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  4. truetype

    truetype

    I think stepandfetchit answered that question -- upcoming earnings.
     
    #4     Jan 25, 2017
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