On a stock that dropped nearly 20% in the past several weeks? Not my cup of tea.
On Sun, May 16, 2010 at 5:18 PM, Louis <loupi3@yahoo.com > wrote:
Okay. Back to the drawing board. Given the small return, the expiration week idea is not that appealing.
Let's take the next month. The 37 put is 1.10. With a theta of .03, it should open up next week, all things being equal, at .95. The return would be .95/37 or about 2.6% for the month (less commiss), or an ARR in the area of 35%.
Respectable risk/reward ratio?
Lou
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