CRBP options Buy-Write,
And Put Write.
High Implied Volatility = 151%
Historical Underlying Vol. = 76% (which is very high compared to index and ETF trading)
CRBP announced earnings yesterday. They missed. Did it matter? Nope. Not surprised.
So ... no more earnings news for 90 days.
CRBP's Resunab was granted Fast Track designation and Orphan Drug designation by the FDA for systemic sclerosis. The drug is also indicated for use on other diseases.
Purchased shares on Wednesday for $9.18. Sold Mar 17 '17 $10.00 Calls for $0.50. Today I Sold (to Open) Apr 21 '17 $7.50 Puts for $1.04.
Therefore, I now have shares that cost $9.18 and are trading higher even on market down-days, and income of $1.54 from selling options.
I'll be able to sell Calls again next Friday at the earliest if I don't want to use margin. I never use margin.
Because of the high IV, Apr 21 '17 $10.00 Calls are now going for $1.77. I don't know what they will trade for next Friday when I'll be looking to sell more Calls.
The only disappointment is that after the April options, the next options available are for July.
Or, is it a disappointment?
The simultaneous selling of both Puts and Calls is a Short Straddle (or Strangle depending on the pricing). That's not considering the purchase of the stock. Owning the stock means there is more potential income from stock appreciations, while the Call side of the trade is not a Naked-Call trade (which are very dangerous). With this stock (at current volatility) there is potential for 50% gain every three months (not counting stock gain).
