OK, earlier we had the SKF breaking 210 on the way clearly to infinity. As best I can tell at these levels, each nickel down in Citi now translates into $27 higher in SKF. That double digit volatility of a week ago was apparently the buy of a lifetime.
That combo I mentioned yesterday, the July 180-190 strangle at stratospheric prices? It's a nice loser 1 day later if you sold it. Unreal.
One day closer to expiration, you can now sell a 30 point wide strangle, the July 190-220, for 19ish. That has a range of 171 to 239 where you profit.
At some point one of these will be an insanely blazing sale, just tough to keep solvent trying to find out which one.
SKF is the true Fear Index these days, but if you still like the VIX, that's hitting new recent highs too. And breaking the 30 level that many noted as important.
7 comments:
Hey, what if you just keep selling strangles every day into expiration, perhaps doubling and tripling your size...a little homage to Lenny maybe?
And that Jan 100 put I looked at a few days ago was $6 then, and it's $4 now.
Playing this sucker is like holding a hand grenade after you have pulled the pin.
yeah, total lightning. Options in here getting a bit wide, although hard to complain given the way the stock moves.
I do like the never-ending strangle idea, lmao, it will work big time one day. I mean it's like $2000 per strangle that goes peacefully into the night, what can possibly go wrong?
The bullish rectangle on SKF (chart) actually calls for a move to 230, at least.
2300 maybe, lol.
Thanks for the chart.
yea this thing is nuts, literally 5 trading days ago it closed near one fiddy...
I'm taking a look at its cousin the UYG for some kind of call spread play perhaps.
jason: I trade UYG too, although I have to get in my head it's the same exact thing as SKF, just in prices that don't seem insane. For some reason a $16 stock moving up and down a point is not as scary.
...upon further thought, it's not exactly the same, it has a floor, I believe it gets taken off the board at a certain price level in IYF.
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