The calls that Randy pointed out are also very interesting.
I'm not sure of the terminology and just got home so I don't feel like looking it up, but what do you think of this trade, which is an iron condor or iron butterfly type:
Short call 17.50; long call 20 (there are no strikes in between):
Short put 6; long put 5.
Graph shows break evens at 5.45 and 18.04; max profit of 55 between 6.00 and 17.50; max loss below 5 capped at 45 and max loss above 18 (max overall) at 195.
Initial credit at 55/max loss at 195=max return anywhere between stock price of 6 and 17.50 of 28%.
OR short put 6, long put 5: max risk 65, max profit 35=53% return at anything above 6.
OR by the time I finish playing around with the graphs, will it be too late to do anything??
Any thoughts?
Lou
--- In ConservativeOptionStrategies@yahoogroups.com, "optionsmike" <michael@...> wrote:
>
> All,
> I went ahead and sold 5 cts of the July 5's in my IRA. Thanks for posying about this issue.
>
> OptionsMike
> www.safe-options-trading-income.com
>
>
> --- In ConservativeOptionStrategies@yahoogroups.com, "Louis" <loupi3@> wrote:
> >
> > Vivus (VVUS), a pharmaceutical company, July 6 puts have a 15% premium (.90). Since the stock is at 9.68 that represents about 47% downside protection (6-.90/9.68).
> > The July 5 put is at .50, a 10% premium with about 54% protection.
> > Obviously a very volatile stock and there are some serious upcoming FDA issues, but these are very interesting numbers.
> > Any thoughts?
> > Lou
> >
>
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