Monday, September 9, 2019

Last Week in Tradeable Vol Hindsight Sep 2-6

My plan is to type up a weekly review of "tradeable vol", things were I think there was a good chance to put on a quick vol trade it and flip it for bucks on a vol rip.

From what I can remember last week:

GRUB: up 10% on thin volume on Friday, options opened with little premium. I made the fatal trading mistake of answering a phone call from my wife while trying to get my order in on GRUB. I showed up after the implied move went from +/- 1.5% to +/- 2%. The move ended up being priced around +/- 2.4% after the stock dropped from 65 to 63. My trade went for a solid 300+% move, though I flipped it in minutes for +30%

MTCH: I was late to the party on this one and paid the price. On Thursday, September 5, Stock opened around 88 then dropped within minutes to 83 on report that FB was launching its own dating service to compete with Tinder. IV went from 38% to over 48% on this move.

TNAV: On Sept 5, news came out that GM was dropping Telenav. This sent the Sept 7.5 put from a tradable .30 to 1.50

BGNE: Sept 5, short report came out on the all-around thinly traded name. The stock dropped from 139 to 135 and I considered buying the Sept 135 straddle for 13.00 but held off due to how terrible the spreads were and how illiquid it was. I could have flipped it for a nice profit as the stock hit a low of 122 within an hour of the short report being out. 

FTV: On Wednesday, Sept 4, news came out in pre-mkt that co. was going to split into two separate entities. I picked up the 68 straddle for what I thought was a reasonable price. Weekly options were dead, I was the only one trading them. Stock wasn't really going anywhere, IV went nowhere, then stock began dropping. I flipped it for peanuts (5%), then watched as the position ran for over +50% as the stock sold off to 66. Had weekly options not been so illiquid, I probably wouldn't have bailed on the position.

That's all I can think of from the top of my head/trading log. Getting this done at end-of-week will be easier to compile.

No comments:

Post a Comment