I tried to pick up ITMN at 14.50 outright to cover over the next several days. I did not get in as the low for the day was 14.75. So what's one to do???
Calendar Spread between March and April. I figure the volatility is because of the March 9th meeting so using April as the back month makes sense. Currently the March 15 calls are 3.90 as of 5:54pm and the April 15 calls are 4.20. Setting up a calendar spread yields a .30 debit. To set this trade up sell the March 15 calls and buy the April 15 calls. Maximum risk is .30.
Now this only really works if ITMN is below 15 on March expiration Friday, otherwise the forward month will need to be used to cover the short if it is above 15.
Happy Trading!
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