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Re: MinnieM post# 6913

Tuesday, 01/08/2013 4:29:29 PM

Tuesday, January 08, 2013 4:29:29 PM

Post# of 16750
If you look at an option skew chart, Jan skew got crushed today. Market anticipating that news will be out in the Feb cycle. Does that mean it's a guarantee, of course not. But the market is "usually" right.

Look at the Jan 7/8 strangle. You can buy it for 2.80 which means your breakevens are $4.20 or $10.80. That would be just too easy as clearly the stock will be below or above those points.