CMG Iron Condor

[Guest]

News: 

Multistate Outbreak of Shiga toxin-producing Escherichia coli O26 Infections Linked to Chipotle Mexican Grill Restaurants

http://www.cdc.gov/ecoli/2015/O26-11-15/index.html 

 

Any thoughts of selling CMG premium as it's down about 45+ points/8% as of now?  IV Rank has gone up almost 40% to about 75%.

[Guest]

I think you can make a small amount in 1/2 hour of selling a put spread, which I just did.

[Guest]

risky if it keeps dropping, but have a ten point cushion..

[Guest]

Well, I rolled it down and out, so hopefully things will settle in the next week, but that was risky.

[Guest]

I think you can make a small amount in 1/2 hour of selling a put spread, which I just did.

Which expiration was this for?  I was thinking more for December Monthlies.

[Guest]

I had today's expiration. I gave myself a ten point cushion, which wasn't enough, so I had to roll down and out two weeks, but I will look at the chart and perhaps even go lower  and further out next week. That was a risky day trade, as I found myself rolling with one minute to go until close.

[Guest]

I am still holding calendars at 600, 620.  The small gain turned into a big loss upon the sudden crash.  My options are to quit my positions or to construct a butterfly to sell the premiums.

[Guest]

News: 

Multistate Outbreak of Shiga toxin-producing Escherichia coli O26 Infections Linked to Chipotle Mexican Grill Restaurants

http://www.cdc.gov/ecoli/2015/O26-11-15/index.html 

 

Any thoughts of selling CMG premium as it's down about 45+ points/8% as of now?  IV Rank has gone up almost 40% to about 75%.

 

In my experience with news the IV goes up for good reason and not a good time to sell it.  Wait for realized volatility to decrease and IV to start coming down, then find a risk controlled way to sell it (like a wide IC).

[Guest]

I got out of my trade this morning with some good profit, but not as much as I could have gotten had I waited awhile.