Volatility Strategy

[positivecashflow]

Thanks wayne... you've given me another thing to play with now!

Cheers.

 

[wayneL]

Haha

Volatility crush in action!!!!

ATM options om CVTX have collapsed from 140% in near dated options and 70-80% in longer the dated series, to around 50-55%.

Anyone who has never seen it have a look LOL

 

[DTM]

Haha

Volatility crush in action!!!!

ATM options om CVTX have collapsed from 140% in near dated options and 70-80% in longer the dated series, to around 50-55%.

Anyone who has never seen it have a look LOL

Even ITM options got crushed, and it only moved 2 cents by the end of the day. Ouch!!!

Looking at the fundamentals (it doesn't make money), you wouldn't invest in it. Must be close to discovering some new cure for heart disease.

 

[money tree]

dissagree DTM

it has had a volatile move. a period of LOW volatility always follows a period of high volatility. secondly, the chart is putting in lower highs and higher lows, indicating a range bound consolidation. thirdly, buying puts when IV is so high means you will not make money even if the stock falls.

I see CVTX now trading @ 20.65, within a few ticks of price when discussion started. The inevitable IV crush has occured as expected.

be interested to see how some of the suggested strategies went?

 

[positivecashflow]

Thought i'd post the IV chart for all...