The IV Rank on FEZ is pretty high at 77 and I am selling the strangle with 30 days to go. After the first part of the election we might get a decent . I am betting that Euro companies won't be impacted as much and I can get paid on the expensive premium.
Sold the 35/36 Strangle for $2.03 per contract.
55% probability of profit.
I added a Big lizzard (No risk to the upside) Selling the 40 Straddle and buying the 41 call. For a 1.77 credit. Now if we get a volatility crush then I can still make money on this trade.
Our new break evens are at $36.14 and 40.42
We just need time to pass so that we collect some of the extrinsic value.
For example if you see a stock selling at $100 right now, you can sell the option of buying that same stock at lets say $95. In other words you are getting paid to buy it at a better price, if it doesn't get to that price you keep the money and if it goes down then you will have to buy it at that price (you get to keep the credit received anyway and improve your cost).
Of course its going to be impossible to for me to explain everything in a paragraph, but that can give you an idea of how to think and the way I like to trade. If you have specific questions in any of my trades just ask and I will do my best to explain it, until you get a clear concept. It might look complicated at first, but it really isn't and is for sure worth it. Good luck!