There have been a few trades today. I took a few chances to the short side, with pretty tight stops. However, it was pretty quiet and none of the stops were violated. AVY is against me slightly today (Oct 65-60p spread), bearish target 59.60.
I also put on a small AIG spread (July 75-70p), This is positive theta as long as it stays below 72.45. The spread earns if the underlying stays put,or drops.
AIG Double-topped a few days back, I’m playing the retracement. We will see. Shorting this market is a more difficult approach.
Max Loss – $145 + commission (stop @ 72.65)
Max Gain – $980 – commission (underlying expires under 70)
Time Stop (expiration) July 20
I tend to like these low risk plays.
PDCO. I sold the high volatility June 35 puts and bought the July 35 p. I bought the spread for a .14 debit. I put 32 of them on for a relatively low risk trade.
Max Loss = 448+ comm
Max Gain (with a drop in Vol by 6%) = $2108 – commission
Time Stop (expiration) June 15
Breakevens: 33.10 and 37.70 (with 6% drop in Vol)
Here is a chart of PDCO.
Earnings takes place after the close on May 24
Here are two trade taken for Different reasons. AIG technical pattern, and PDCO Volatility related earnings play