With an implied volatility
rank of 64 -- the highest among the broad market ETF's SPY
, and DIA
offers a premium selling opportunity here that is likely to quickly evaporate as the beginning of the year positioning ensues.
I'm not going to play this, as I'm already in an IWM
poor man's covered call, but here's the setup:
Feb 12 103.5/117.5 short strangle
Max Profit: 1.53/contract ($153)