IMHO, spoos approximate "fair value" at 675 with or without war.
As far as what happens when the war starts, it will certainly be a strong rally, but I am more interested what happens the two weeks after the first shot is fired. The "day of" the spoos will open up +30 or +35 or more, so unless you are prepared for the rally, it will be difficult to take advantage of it. As to the calls, well, if the spoos keep going down between now and the start of the war, EVEN with a strong rally the calls will barely be in the money.
On the other hand, I like the way Electric has been trading lately, so this may be the start of the final bottoming process.
nitro
As far as what happens when the war starts, it will certainly be a strong rally, but I am more interested what happens the two weeks after the first shot is fired. The "day of" the spoos will open up +30 or +35 or more, so unless you are prepared for the rally, it will be difficult to take advantage of it. As to the calls, well, if the spoos keep going down between now and the start of the war, EVEN with a strong rally the calls will barely be in the money.
On the other hand, I like the way Electric has been trading lately, so this may be the start of the final bottoming process.
nitro