The Option Pit Boot Camp is BACK:?Sign Up Here!
The following shows a vol chart of a high dollar stock, ?The stock has been a high flier and has had wicked moves. ?The IV has been extrememly bid relatively consistently, yet over the last two months the undelrying stock volatility has changed. ?The stock has no longer been moving around as much and has become somewhat range bound. ?take a look and see if you can guess what the stock is:
LivevolX (r) www.livevol.com
Regardless of knowing the stock name, how would one trade it if he or she knew they didn’t have earnings for a month? ?I would probably want to set up some sort of wide condor to avoid some of the small pops in 10 day HV.
The Trade:
This is ?a stock that a lot of people have made good money on being long premium and are now getting their lunch handed to them. ?Traders should be selling ratio front spreads, condors and strangles on this banana.
Guess the stock in the comments section.