With an IVR of 97 and an IV of 44, MOS is a premium selling opportunity in the beaten down commodities sector (they're involved in potash/phosphate products for agriculture).
Jan 22nd 27.5/36.5 short strangle
POP%: 73%
Max Profit: $102/contract
BPE: ~$321
BE's: 26.48/37.52
Jan 22nd 27.5/36.5 short strangle
POP%: 73%
Max Profit: $102/contract
BPE: ~$321
BE's: 26.48/37.52
Comment:
With 36 days to go until expiry, and with the short call having lost a substantial amount of its value, I'm rolling it down (same expiry) to the 33 strike for an additional .22 in credit.
Comment:
Rolled the entire setup out as a unit to the Feb 26th 27.5/30 for a .90 credit as the short call side was nearing worthless.
Comment:
Rolling the 30 short call down to the 27.5 (same expiry) for a .27 credit, so now I've got a Feb 26th 27.5/27.5 short straddle.
Comment:
With the short call side nearing worthless, rolling out the setup to a slightly inverted strangle -- March 11th 26.5 short call/27.5 short put for a .54 credit.