Both are long term oriented, but one has a higher R/R since it expects a direct rejection of that level, I will be making very small positions since the QE has just began tho.
Being cheap doesn't make it good First call strike (shorting) @ 49, September 16 expiration.
IV at 303% when historical volatility barely makes it to 200% makes this trade a pretty easy one imo. There's a very minimal chance that a gap would find higher values of $40 - or less than $4. Anyway, I'm not holding this options once the theta fat is gone. Sarepta Therapeutics: Patience Will Not Be Rewarded Stock Falls, Janney: 'Stay on the Sidelines'
IV rank is around 93~, which means opening a short traddle seems pretty safe - Plus, Kellogs is known for it's low historical volatility anyway Closing at 50% profit
Each leg is worth (both put and call) $0.22, which means the whole op costs me roughly $0.44 for 1 stock. I'll be also gamma scalping to reduce costs (since it's -$440 for every 1000 stocks, I'll try to get that to 0.) IV: 31% HV: 37%
Let's say I'm buying volatility. All the positons are in the chart.
Worth the shot after earnings, RR equals to 5
But for sure there’s a little of na accumulation process on it’s way on the US Dollar, which seems to reason with the actual fundamentals.