Pembelian
Opening: SAVE January 19th 10 Covered Call
... for an 8.15 debit.
Comments: The IV in here is redonk (IVR 96/IV 238.6%), no doubt because the merger decision between SAVE and JBLU is in a court room, with the trial scheduled to finish up at year end and a ruling to follow thereafter. At the moment, the buyout proposal is for $33.50/share and/or a $29.80 "Deal-Through Price." While most are probably trying to arbitrage SAVE for the difference between current price and the potential buy-out amount, I'm looking to make money even if the buyout doesn't go through with a cost basis below SAVE's 52-week low and/or the judge takes a bit of time to mull over whether to impose conditions on the buy out (at which point I hope to be out of the trade).
Naturally, if the deal does go through, and price jumps to the buyout price, I'll be pissed that I didn't go just Plain Jane long call ... .
Metrics:
Max Profit: 1.85 ($185)/contract
Buying Power Effect: 8.15 ($815)/contract
ROC as a function of BPE at Max: 22.7%
ROC at 50% max: 11.3%
Comments: The IV in here is redonk (IVR 96/IV 238.6%), no doubt because the merger decision between SAVE and JBLU is in a court room, with the trial scheduled to finish up at year end and a ruling to follow thereafter. At the moment, the buyout proposal is for $33.50/share and/or a $29.80 "Deal-Through Price." While most are probably trying to arbitrage SAVE for the difference between current price and the potential buy-out amount, I'm looking to make money even if the buyout doesn't go through with a cost basis below SAVE's 52-week low and/or the judge takes a bit of time to mull over whether to impose conditions on the buy out (at which point I hope to be out of the trade).
Naturally, if the deal does go through, and price jumps to the buyout price, I'll be pissed that I didn't go just Plain Jane long call ... .
Metrics:
Max Profit: 1.85 ($185)/contract
Buying Power Effect: 8.15 ($815)/contract
ROC as a function of BPE at Max: 22.7%
ROC at 50% max: 11.3%
Trading ditutup secara manual
Global Close: Closed for an 8.46 credit. .31 ($31) winner.
Pernyataan Penyangkalan
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Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.