IB TWS is reporting March 72 put at 37.9% vol and April 72 put @ 35.7% vol. I have only recently started watcing the options and not sure if they are high or in the line
CL Redux
- Thread starter schizo
- Start date
Short a April 75 straddle for $6k+ credit per contract :eek:
March is not too shabby either. $2.5k credit per 75 straddle. Expiry next wednesday
March is not too shabby either. $2.5k credit per 75 straddle. Expiry next wednesday
You might want to read this article.
Can High Options Volume Predict Future Stock Prices? -- Seeking Alpha:
http://seekingalpha.com/article/125787-can-high-options-volume-predict-future-stock-prices
vol = volatility, which affect put (and call premium). Not referring to volume.
Also, stock option's high volume may indicate inside knowledge. Much less so for something like crude. I do not pay much heed to volume
Also, stock option's high volume may indicate inside knowledge. Much less so for something like crude. I do not pay much heed to volume
I am not aware of this correlation
CL.
I was going to buy 75puts at the close but they were at 1.10
They expire in 11 days I believe. 74puts were .85 .. Lotta premium for 11days
Lot of premium? Do you remember that just yesterday at 8am CL traded 72.60? That is only 36 hours, for 11 days (ignoring a directional bias) that doesn't sound like enough to me.
With the market moving up 6$ so far this week I would think the 75put would be at .85 if there was strong conviction that we are going to move higher. Good example was last Friday I bought 70$ puts for .90 before the market broke lower. After the market broke lower I sold them for 1.65.. If I would have waited 5minutes longer they were going for 2.20.
Maybe they just price higher for were the market has been?
Speciaul_K, Thanks for the heads up on the vol. question for CL. Got an idea, and have put on a paper trade to see how I do. I have not traded CL much before, and need to test this out to see how I do hedging this.
Position: Sold a 75P & 75C for total $2.5k credit. Expiry this wed 17th.
Strategy: Do nothing as long as CLH0 is between 74.5 & 75.5. Above 75.5 I will go long one paper contract to hedge, short one below 74.5. I need to not get chopped to death around 74.5 & 75.5 area
Risk: Large gap up/down > large paper loss.
Let's see - I have 250 tick credit to manage this till wednesday - I make whatever is leftover. If this works out okay, I might start doing something similar monthly, depending on how volatility is from month to month.
Comments?
Position: Sold a 75P & 75C for total $2.5k credit. Expiry this wed 17th.
Strategy: Do nothing as long as CLH0 is between 74.5 & 75.5. Above 75.5 I will go long one paper contract to hedge, short one below 74.5. I need to not get chopped to death around 74.5 & 75.5 area
Risk: Large gap up/down > large paper loss.
Let's see - I have 250 tick credit to manage this till wednesday - I make whatever is leftover. If this works out okay, I might start doing something similar monthly, depending on how volatility is from month to month.
Comments?