I am new to options trading - I have a feeling this is a terrible idea, but if anyone can offer feedback on the reasons why, I would appreciate it. PTR current price is 149. Strategy: Sell PTR Sept O8 Call 165 @ 10.20 Sell PTR Sept 08 Put 125 @ 11.00 Thesis: Volatility on Chinese ADRs is out of whack, due to extreme price runup last fall as a result of new regulations allowing Chinese investment in HK, which caused a huge runup in price indepedent of change in value of underlying assets. The Chinese government is likely to do whatever it can to drive up value of Chinese companies in advance of the Olympics (gimme a C, gimme an H ... etc...), but a good chunk of that has already happened with the cut to the trading tax. So I think upside potential is limited, and downside is limited by the value of the asset. Am I not basically neutral if the price stays within the 115-175 range? (Buffet sold in the 180s). Don't hold back!