Both are long term oriented, but one has a higher R/R since it expects a direct rejection of that level, I will be making very small positions since the QE has just began tho.
Being cheap doesn't make it good First call strike (shorting) @ 49, September 16 expiration.
IV at 303% when historical volatility barely makes it to 200% makes this trade a pretty easy one imo. There's a very minimal chance that a gap would find higher values of $40 - or less than $4. Anyway, I'm not holding this options once the theta fat is gone. Sarepta Therapeutics: Patience Will Not Be Rewarded Stock Falls, Janney: 'Stay on the Sidelines'
IV rank is around 93~, which means opening a short traddle seems pretty safe - Plus, Kellogs is known for it's low historical volatility anyway Closing at 50% profit
Each leg is worth (both put and call) $0.22, which means the whole op costs me roughly $0.44 for 1 stock. I'll be also gamma scalping to reduce costs (since it's -$440 for every 1000 stocks, I'll try to get that to 0.) IV: 31% HV: 37%
Neutral as it gets. Bearish if the flag that is happening right now breaks - until a reverse pattern appears. Bullish if the flag fails.
What do you describe as bullish? Not exactly this pattern tho.
Let's say I'm buying volatility. All the positons are in the chart.
Worth the shot after earnings, RR equals to 5