What do yall think about calendar or diagonal Spreads on Meme Stocks?

zghorner

zghorner

Take CLOV for example: JUN 18 IV is 385% DEC 17 IV is 150%

If one were bullish on the stock would calendars not be a decent strategy to exploit the pricing difference? Really not sure about moneyness or if a diagonal would be better than the calendar on incredibly volatile underlying...just kicking around some ideas

I know strangles tend to be the go to for highly volatile underlying but I have had poor luck with them in the past...usually end up losing twice as much money lol.

anywho just brainstorming a bit and would appreciate some input from you folks,

thanks.
 
Just to be on the same page,you are talking about selling June,buying Dec..ild probably look at July/Aug vs Dec,but for higher coverage..

For the Diag,are you thinking of selling the near term option at a higher or lower strike than the Dec call??

Im pretty big in AMC diags
 
taowave said:
Just to be on the same page,you are talking about selling June,buying Dec..ild probably look at July/Aug vs Dec,but for higher coverage..

For the Diag,are you thinking of selling the near term option at a higher or lower strike than the Dec call??

Im pretty big in AMC diags
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Correct and I and thinking about selling higher strike on near dated to increase chance of expiration OTM.
 
FWIW,I ran a quick scan and for CLOV and the only Diag that came up was the 8/20 - 12/17,selling the 30 calls buying the 25 strike in Dec..trades around 1.50

Edit..found several more closer to ATM

zghorner said:
Correct and I and thinking about selling higher strike on near dated to increase chance of expiration OTM.
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taowave said:
FWIW,I ran a quick scan and for CLOV and the only Diag that came up was the 8/20 - 12/17,selling the 30 calls buying the 25 strike in Dec..trades around 1.50

Edit..found several more closer to ATM
More...
Mind if I ask what tools did you use to scan the Diags?
 
Fme the front doesn't really move the vol surface after the initial move. If you are late to the party the front may go to 1000 IV while the back remains in triple digits. Doesn't seem like asymmetric risk/reward to me. You have people with cash ready to buy any dip in the name of class warfare on the one side vs funds trying to make their quarter on the other
 
I am in the AMC 7/2 - 7/16. 20 -19 diag for a. 0.18 credit..Short the 20 strike puts for 7/2 and long the 7/16 19 strike..

The upside flys are dirt cheap,or at least they were..



Atikon said:
Fme the front doesn't really move the vol surface after the initial move. If you are late to the party the front may go to 1000 IV while the back remains in triple digits. Doesn't seem like asymmetric risk/reward to me. You have people with cash ready to buy any dip in the name of class warfare on the one side vs funds trying to make their quarter on the other
More...
 
taowave said:
I am in the AMC 7/2 - 7/16. 20 -19 diag for a. 0.18 credit..Short the 20 strike puts for 7/2 and long the 7/16 19 strike..

The upside flys are dirt cheap,or at least they were..
More...
I hope you get out unscathed brother. Saw very good traders got caught the first time around
 
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