Look at the balance sheet, it's fine. Technically strong and there are no signs that it won't recover. I heard that some analytics still have price target $200. What do you think about it, folks?
VRX: $150 in a 90 days?
- Thread starter felixbocharov
- Start date
VRX options are very lightly traded in Canada, b/a spread, way too wide. U.S. looks more liquid, plus a lot tighter.
Though vol at 74% is lower than historical 92%, in the last 6 months vol has touched in the high 20%'s. Vega could crush if going long. Maybe a synthetic long put straddle.
buy 1 underlying stock
buy 2 ATM puts (front month)
Kind of expensive, but pretty safe, and lucrative, if you think VRX is going north in the very near future. If it goes south, you'll still make money, but not as much. Worst thing that can occur, it trades sideways. That happens more than I like, but it keeps the losses to a minimum.
If you do it, let me know, very interested.
Cheers!
I will consider it. Thanks, really interesting strategy.
This is a short play, not a long one.
Didn't you really mean buy 100 underlying, SELL 2 ATM puts ?
You could go short, however, the reason for the long play is, the potential for profit is unlimited, and the possible loss is capped, and the original post is looking for a strong upward movement.
Here is an example taken from the Option Guide
Please dissect what is right and or wrong with this strategy. This is a life long learning experience for me.
Cheers!
Well, I do use an option calculator, in fact two.
Since it appears my suggested trade is lacking something that has you taking a negative bent, please, present a detailed trade that is superior to the original post or show where the weakness is in mine.
This request has no overtones, just keen interest.
Cheers!