tag:blogger.com,1999:blog-1520302325239963360.post3422530937376515833..comments2024-01-23T14:04:29.555-08:00Comments on Risk Laboratory: Ophir Gottlieb: STEC (STEC) - Call Skew Bends; Calls Bid on Rumors... AgainOphir Gottliebhttp://www.blogger.com/profile/14504557662647338626noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1520302325239963360.post-74177759540390429982010-11-23T07:05:38.110-08:002010-11-23T07:05:38.110-08:00I like to sell elevated vol and if necesary cover ...I like to sell elevated vol and if necesary cover with lower vol. In these types of spreads a $0.25 "bet" feels reasonable given the vol the trade makes. Just to be clear though, this isn't advice. I'm just pointing stuff out. I think it's entirely reasonable to read this post and have the opinion that this is too risky or to actually buy the vol.Ophir Gottliebhttp://www.blogger.com/profile/02699643319377083669noreply@blogger.comtag:blogger.com,1999:blog-1520302325239963360.post-83454350596588445372010-11-23T06:55:34.304-08:002010-11-23T06:55:34.304-08:00I've noticed that you like to sometimes sell p...I've noticed that you like to sometimes sell premium when the skew is this positive, is it because these takeover/merger rumors don't materialize that often? <br><br>How do you weigh the risk/reward?<br><br>When I see a skew this positive, I tend to say "trust the market," and back off, or just do a backspread. <br><br>Just curious how you approach these skews . . .Briannoreply@blogger.com