Found myself on the wrong side yet again of being short vol, this time on AI. Basically ended up buying back the spreads at the vol peak on two 1x2 call ratios that I had established for seemingly decent credits. Then almost immediately after I covered, vol and stock reversed, and my trades turned into solid winners. So damn typical. Stung again by the siren song of short vol.
Followed that up by bungling my entry on a ATVI earnings double calendar spread (aka, a covered strangle). Instead of buying to open March calls to cover my short wkly calls, I ended up selling to open in March. I tried to leg into the position vs. buying both legs at the same time due to the hellacious spreads, was looking for a better fill but ended up spending 20cents more on that spread than I otherwise could have bot it for. Regardless, I felt IV was too juiced this week and barring the MSFT deal being called off, I wasn't expecting much movement.
Yesterday AMC: ATVI, NOV, PINS, SAVE, SWKS, TTWO
Today BMO: AVXL, BP, CNC, DD, FISV, KKR, RCL
Other News: BBBY announces $1b equity raise, which is nearly 2.5x its current mkt cap, stock is down 42% but it still rallied 20% from the Tues open, which I doubt was short covering due to recent lack of borrow.
Follow through names to watch:
Follow through watch:
Day before Y'day AMC:
Yesterday BMO: ON
Y'day Other News:
2 days ago AMC: AAPL, AMZN, BILL, CLX, F, GILD, GOOGL, GPRO, HIG, MSTR, QCOM, SBUX, SKX, TEAM, X
2 days ago BMO: CBOE, CI, REGN
2 days ago Other News:
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