Bot a CAPR Jan $25/Dec $20 put diagonal for $3.60, currently underwater in that one. I foresee a secondary offering coming on this stock rip which I imagine will dilute the stock. Also, it appears my genius QURE diagonal will be up in smoke, a real shame since it was up some good $ but I was holding out for more. My effective cost for the spread is 25cents, a much easier pill to swallow than buying vanilla calls.
Yesterday AMC: AI, CRM, PATH, SNOW
Today BMO: DG, HRL, KR
Other News:
Follow through names to watch: CAPR, M, GTLB, CRWD, OKTA
Today's watchlist:
Follow through watch:
Day before Y'day AMC: AEO, ASAN, CRWD, GTLB, MRVL, OKTA
Day before Y'day BMO: DLTR, M
Y'day Other News:
2 days ago AMC: CRDO, MDB
2 days ago BMO: SIG
2 days ago other news:
Is the diagonal for mispriced vol? Or directional?
ReplyDeleteDirectional, but benefits from purchasing more time and less implied volatility while selling higher volatility with the added benefit of being able to close out the short leg for a profit and rolling the short leg out again. For instance, I have a call Jan 20/Dec 22.5 diagonal on in CWAN that I now own for .88 cents which is worth about $2.50. It looks like the Dec 22.5s may expire worthless and I'll probably roll into short Jan 22.5s and sell 1x of the of Jan 25s for what I call a skip-strike ratio. I'll end up having the position on for a net credit. I could take the near +200% gain, but I'm deciding to press my luck
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