The SEC update the list with companies which are on the no short list. Strangely enough IBM is added.
Enough reason for me to get some short delta's on IBM. I am long JAN 115 PUT and short the OCT 110 PUT. I paid 5USD. If it works I can profitably roll the OCT 110 to the next month. If it doesn't rolling to the next month will reduce the cost of the little play.
I like making directional with debit diagonal. The downside risk is very limited - if we stay at this level I can roll to November for approx 2USD, reducing the cost of the trade to 3USD. After Nov I will still have two more rolls Dec and the closing roll to Jan. If the stock runs up, without any risk I can start selling the NOV 115. Of course safety comes with a cost - IBM falling overboard will not give me the jackpot. The question is how often are you right in you directional plays and how often do you get the jackpot when you do a directional trade.
The market is waiting for the results of the discussion in Washington. The VIX and RVX are staying very high. We are quite sure the Washington rescue will come - but traders seem not to be selling a lot of put spreads.
With a RVX in the high thirties - be careful the next move can be huge.
One more thing - like to see a good youtube video with George Bush (not a joke)
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