On the 2015 APR 125 strike, there are 150,332 open interest calls and 128,144 open interest puts as of March 23, 2015. I think some entity has a decent amount of volume on both sides and is using a short straddle (sells both put and calls on same strike).
On my options paper trade account, I sold 10 calls and 10 puts today. In order to break even or make a profit, the price must close between 118.73 and 131.28 on expiry on April 17, 2015. Of course, I don't need to wait until expiry, I can close out the position between now and April 17 as time value will erode on a daily basis.
I am looking for price here to gyrate in this range and chop for a bit, letting me earn the theta decay.
Here is the options chain as it looks like on market close March 23rd, 2015:
i.imgur.com/ibaeJWX.png
Here is my position:
i.imgur.com/rXs2hdN.png
On my options paper trade account, I sold 10 calls and 10 puts today. In order to break even or make a profit, the price must close between 118.73 and 131.28 on expiry on April 17, 2015. Of course, I don't need to wait until expiry, I can close out the position between now and April 17 as time value will erode on a daily basis.
I am looking for price here to gyrate in this range and chop for a bit, letting me earn the theta decay.
Here is the options chain as it looks like on market close March 23rd, 2015:
i.imgur.com/ibaeJWX.png
Here is my position:
i.imgur.com/rXs2hdN.png