With a dwindling earnings calendar and some buying power to put to good use, I'm looking to go where the IVR/IV takes me. With an IVR of 74 and fairly decent IV of 43, HES popped up toward the top of the Dough "Notable Stocks" grid (sorted by IVR).
Here's my set up:
Dec 24 51/68 Short Strangle
POP%: 75%
Max Profit: $150/contract
BPE: ~$597/contract
BE's: 49.50/69.50
Notes: The underlying isn't the most liquid thing, so you may not get a fill at this particular price and might have to monkey around with it a bit. Me, I'm just going to enter the order and if it fills, it fills. If it doesn't, I'll look at it again next week to still if there's still premium in the play. As always, I'll look to take the trade off at 50% max profit so I can redeploy the capital elsewhere.
Here's my set up:
Dec 24 51/68 Short Strangle
POP%: 75%
Max Profit: $150/contract
BPE: ~$597/contract
BE's: 49.50/69.50
Notes: The underlying isn't the most liquid thing, so you may not get a fill at this particular price and might have to monkey around with it a bit. Me, I'm just going to enter the order and if it fills, it fills. If it doesn't, I'll look at it again next week to still if there's still premium in the play. As always, I'll look to take the trade off at 50% max profit so I can redeploy the capital elsewhere.