Naked Options

why not just post the chart ?


that way we don't get those damned pop-ups
 

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bonsai said:
that's sad .

even if you were right.

True, but then tell that to the publishing company I'm trying to keep on it feet - because they were caught out badly and had their backsides sued.

.. plus, the guy I know who didn't sort out his copyright and has lost a fortune because of it.
 
Other issues aside, this looks like a good old fashioned low risk (if you can say that about writing options), high reward trade with good probability.

Which strike has the most open interest?

Good luck!

(but dont count your chickens before they hatch!)
 
As you say Sandy, "doesn't help the cause". But with the close at 25.84 you need a 38% rally by expiry before you start to lose. A premium of $0.65 for 3 days sweat ain't bad! :) IV over 300% - don't think I've ever seen it that high before. You could get the same premium by doing a 30/35 backspread, but all that does is increase the chance of loss above 30 instead of 35 for the naked call. Not likely unless there's a bid.
 
Hi Roger,

Agreed - the overnights are at $28.50. This thing can fly about a bit and the news wasn't entirely unexpected.
 
Here's my own attempt at a "low risk" trade for Feb expiry on OVTI. Basically, I'm selling the 40/50 Feb strangle and covering it by buying the 40/50 Sept strangle. IV on the Febs is around 126%, and 60 - 68 on the Septembers, so massive skew between the near and far months - ideal for calendars. Breakeven is between 40 and 55 with price at 49.80. Profit is between these levels, with a max profit at 50. Main risk is stock tanking below 40, or IV of the Septembers collapsing during next 3 days - not likely IMHO as >90 day IV is close to 2 yr lows.
 

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OVTI stock split 2:1 today - should have mentioned earlier, so not taken to cleaners yet. :)

TBS - RMBS pulled back to 35 as I write, so all is not lost - bet you're losng weight tho'!
 
HI Roger,

Still hanging in there, real battle between vol and time going on. Can't shake the broker off the phone, they are defo more interested in it than me!

33.90 - 34.10
 
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