What caught my eye today was the over 200% implied volatility in the weekly options. That makes options very expensive. Hence CCI took a speculative flyer on the 60/65 - 85/90 iron condor for a credit of $2.25.
At the marco level this is a 45/55 wager (win $2.25 or lose $2.75 per contract) that Netflix will end the week between $65 and $85. A $20 range.
More fine tuned, CCI is hoping that whatever the earnings news is today
- there will be enough of a tug of war between the netflix bulls and bears to have the stock trade in that range sometime in the next few days
- the volatility should be sucked out of these options after the news is out today
Yes, this is a speculative trade. It was done as a very small trade in the portfolio which will not really impact overall results for the year...but ..I could not resist taking a chance on the 200+% volatility of the "rational market".