Snack info board

[Lord DarkHelmet]

I agree that AAPL is at a well tested support level.

Personally, I think that the fiscal cliff saga is not going to be settled going into the NewYear and all stocks are going to tank. I hope I am wrong. I am staying out of options right now anyway because of this mess and with the Holidays coming up, I can't pay as much attention as I would like.

With that being said, Since IV is so high, it is definitely preferable to open up a Net Negative VEGA strategy. Both the Iron Condor and Directional Butterfly fit this mold.

At this point, I would more likely open the Butterfly, since it expose less capital to risk.

I would definitely not do the reverse Calendar. It is a negative VEGA trade, but as he discussed, it takes a lot more margin to garner similar absolute returns.