I think MNK looks interesting at this price. Price has been driven down. Could potentially continue to fall, but in long run, this could be a good potential buy opportunity. Time will tell.
The IV% on short dated put options are much higher than normal. I sold a couple 3/2 $15P for .80/contract (3 days till expiration)
B.E. (or purchase price if exercised) = $14.20
MNK $16.30
GREEKS
D / G: -.0980 / .1606
T / V: -.0188 / .0038
IV: 171.29% (vs. 56.87%)
W
The IV% on short dated put options are much higher than normal. I sold a couple 3/2 $15P for .80/contract (3 days till expiration)
B.E. (or purchase price if exercised) = $14.20
MNK $16.30
GREEKS
D / G: -.0980 / .1606
T / V: -.0188 / .0038
IV: 171.29% (vs. 56.87%)
W
Transaction en cours:
Stock price initially moved higher after earnings, but has since given up it's gains. Based on the chart, there looks to be pretty good support between current price and $15p. IV% has been decreasing, indicating consensus is reduced vol (movement) ahead.
Regarding the $15 Puts I sold, I had the opportunity yesterday to close positions for .05/option, but I passed thinking I would simply let the the options expire worthless. I didn't expect MNK to give up all of its gains. Now, MNK is currently price the same as when I originally sold the options. However, due to IV% down by 40-50 and time decay, it looks like I can close (buy back) my position for less than .15/option. (STO @ .80). While that would still make for a substantial profit for a 2+ day trade, due to price support and fundamentals of stock (I'm more neutral than bearish), I plan on passing on closing the position.
My Plan Of Action:
- I would definitely strongly consider BTC @ .05 & probably up to .10. I may place a limit order to see if it gets executed.
- If price stays above $15 by end of day Friday, options will expire worthless if positions are still opened.
- If options are exercised and stock price is $13 or higher, I am fine with selling calls. As long as the bottom doesn't fall out, I should be able to make a profit and potentially increase overall trade profit.
- If stock price falls below $13 before Friday, I'll close position for a loss.
Stock price initially moved higher after earnings, but has since given up it's gains. Based on the chart, there looks to be pretty good support between current price and $15p. IV% has been decreasing, indicating consensus is reduced vol (movement) ahead.
Regarding the $15 Puts I sold, I had the opportunity yesterday to close positions for .05/option, but I passed thinking I would simply let the the options expire worthless. I didn't expect MNK to give up all of its gains. Now, MNK is currently price the same as when I originally sold the options. However, due to IV% down by 40-50 and time decay, it looks like I can close (buy back) my position for less than .15/option. (STO @ .80). While that would still make for a substantial profit for a 2+ day trade, due to price support and fundamentals of stock (I'm more neutral than bearish), I plan on passing on closing the position.
My Plan Of Action:
- I would definitely strongly consider BTC @ .05 & probably up to .10. I may place a limit order to see if it gets executed.
- If price stays above $15 by end of day Friday, options will expire worthless if positions are still opened.
- If options are exercised and stock price is $13 or higher, I am fine with selling calls. As long as the bottom doesn't fall out, I should be able to make a profit and potentially increase overall trade profit.
- If stock price falls below $13 before Friday, I'll close position for a loss.