![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7qU94jtU8vbFitsgMMYZUEMyXno9fTPHUmkUvAFL-S2eElwgr_PT47Wm7GAPMV1DZ8iLP1-fOLt0pYEN5Rpt9A_STOI2pr2T0zMiLXc1nHCS8hJKdst-xbWoptsRcWUW0Qf3nxAhMNLQ/s400/dish_summary.gif)
The company has traded over 6,000 options on total daily average option volume of just 1,991. The action is 2,500 Sep 18/19 strangle sales; Mike Bristow from Vtrader Group helped me hunt this color down. The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVmMCfyayySukkqSgwwrDyMIKxRucip-KINADPzb-TiHH5_zCSj6VmT4litVO9kJ7pmCmwNRNWr8k_0WXmtzbcWaFQwxZiGaz5cUzZED2RvHLxxGiqhVD0XPd0O3ZA0HMUIiBepBuIPZI/s400/dish_stats.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggTHumTbIQWi4TwlSk9r2fcu5nUZ98-0BS4OPzClPLQI4wlGpld3vNTDf_HYOp0nGV2kfToDinNA2gj6zHCWJVHv3dVxvz3dk2CCMMV6VOkC2x9nNxRaqneRIROyO0s2M-tLbt60SIPb0/s400/dish_trades.gif)
The Options Tab (click to enlarge) illustrates that both the calls and puts are mostly opening (compare OI to trade size).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn9mA2z1vlPBRdsYwKx6fzE3rLsIZST-68NEA1ushV91z91lHcyF600-d5unLM6NMHVq7rsV4zQx6yH3kV1IDz3vmfg_bMQD14y09aUxrZoRbvYt8E4rwMM5NCLRIl_x2UlcKe9PmPHCI/s400/dish_options.gif)
This is an interesting vol sale based on a recent event. Namely, the stock fell apart from an earnings result. The bet would be that the stock stays put for a month or so. Let's look at the Charts Tab (6 months, click to enlarge) first. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAsgd392VqZkuVEst0JFSN7aAQFrAJYrwWbVNMyoQOm6u_5FzkUx-LGeGg95Wyidoke_4znm8dyeU3l8FSeV4a4qvC3MnaPt9MY5hA9UHpkf2wlF1Z1QzJ_k_DtAzj_sqojgT4VCWBCAE/s400/dish_charts.gif)
See how the HV jumped after earnings. The strangle sale was @ $1.35 ($0.60 in the puts and $0.75 in the calls). I like this trade small. I don't want to cover up with the Sep 17/20 strangle b/c it feels too expensive (which makes sense, that's why a vol sale looks enticing). Maybe cover this up in a week or so if vol drops; or just close it for a winner if that's the case.
UPDATE:
I didn't mention that the HV180™ (long term realized vol) is only 35. This strangle sold ~37.5 vol. If the sale were closer to 40 vol, I'd like it more.
This is trade analysis, not a recommendation.
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http://www.livevolpro.com/help/disclaimer_legal.html
Could you use a similar strategy on OSTK?
ReplyDeletevery similar situation; good eye. Strangle sale looks enticing for sure.
ReplyDelete