ATM Straddle BBY Jan 18th Expiry -- Thoughts?
- Thread starter barney-
- Start date
Well when I was looking at the trade was Monday (see January 13th OP above).
I just checked Fidelity's site..
at EOD Janunary 13th the...
$37 ATM P - $1.42
$37 ATM C - $1.34
Thus: $1.42 + $1.34 = $2.76
$2.76 / $37 = ~7.5% move.
We had to see it coming, the IV was through the roof for a Thursday announcement. Someone loaded up on those ATM driving the IV of that strike much higher than the rest of chain.
I just checked Fidelity's site..
at EOD Janunary 13th the...
$37 ATM P - $1.42
$37 ATM C - $1.34
Thus: $1.42 + $1.34 = $2.76
$2.76 / $37 = ~7.5% move.
We had to see it coming, the IV was through the roof for a Thursday announcement. Someone loaded up on those ATM driving the IV of that strike much higher than the rest of chain.
What would have worked out well? No one made a call.
Yes I am aware of the threads timestamp, the 5 day chart includes January 13th. You didn't include the price for the straddle in your post.
If someone saw it coming then why was there no live trade posted to ET? These sort of trading opportunities are always spotted after they occur.
No big loss. Realistically the trade would have been closed on Thursday at about $10.00, so maybe a 4x trade. To hold till Friday would be foolish because reversals are common. Options go up 4x on a weekly basis, so there will be lots of other trades with the same potential. Take a look at GOOG, PCLN, AAPL, QQQ. The tricky part is getting into them before the move.
You just wanted thoughts on the straddle, there was no post on a position actually taken. This is now a "could have, should have, would have" type of thread.
Can you show me where you said long in the OP?