S&P 500 & Nasdaq Analysis and Trends

[AZ123]

Opened a strangle position on KCI today. They've got a patent lawsuit that should be going into deliberation by the end of the week. Word is that it should move around 15+ points in either direction when the verdict comes out. It makes sense, too, as rulings have gone against them in the past and a victory in this case would breathe some confidence into the stock. A loss would invalidate their patents for a product that accounts for ~60% of their revenues.

After spending all day fighting with ridiculous option spreads and blatant manipulation, I managed to get semi-decent prices in KCITX (Aug 22.5 Put) and KCIHK (Aug 55 Call). This is my first strangle position so I'm nervous.