the may 6 put @ 0.30 is 4.4% (100% annualized) time value paid for 16 days of protection ..the june put @ 0.59 is 8.9% (74% annualized) time value paid for 44 days of protection doesn't sound cheap to me. but cheap is in the eye of the beholder....
--- In ConservativeOptionS
>
> If the market is turning bearish, as one of my subscriptions tells me, then I'm considering buying TZA, which closed @ 6.30.
> The May $6 put is only .033 and even the June is 0.59 so protection is pretty cheap for this 3X contra, which makes for a very nice opportunity.
> What am I missing?
> Lou
>
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