TRADE IDEA: VRX NOV 18TH 17.5 SHORT PUT
Okay, so there's other "big pharma" that I like wayyy better than Valeant (e.g., BMY, GILD). The problem is that BMY and GILD are more expensive and don't have the implied volatility that VRX has (for obvious reasons: they don't have as many "warts" as VRX).
Nevertheless, I'm watching VRX here because its implied volatility is so high (>100%), which makes relatively far out-of-the-money short puts comparatively rich in premium.
Here, I'm eyeing the 17.5 short puts for obvious reasons -- that strike is below historic lows for this poo pile. Moreover, with an implied vol of >100%, I can get .83 ($83) in credit per contract "at the door," which makes it quite attractive for an underlying at this price. The notion here would be to either (a) keep the premium; or (b) get put the shares at 17.5, after which I would sell calls against (covered call).
Nevertheless, I'm watching VRX here because its implied volatility is so high (>100%), which makes relatively far out-of-the-money short puts comparatively rich in premium.
Here, I'm eyeing the 17.5 short puts for obvious reasons -- that strike is below historic lows for this poo pile. Moreover, with an implied vol of >100%, I can get .83 ($83) in credit per contract "at the door," which makes it quite attractive for an underlying at this price. The notion here would be to either (a) keep the premium; or (b) get put the shares at 17.5, after which I would sell calls against (covered call).
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.