Options GOODIES

[Murphey]

RAX Earnings Trade Idea

Weeklies, this Fri exp.
IV is 131%, 1 SD = 6.00 call it.
Underlying = 49.00 Call it.

There is no premium at 2 SD's now.

So we look at 1.5 SD = 9.00

Idea:
Sell vertical call credit spread for .40 cent credit per contract.

57.50/62.50 for .40 cents.

57.5 = .55 ask
62.5 = .20 ask

Target = .35 cents, close when both options are a nickel or less,
hopefully tomorrow sometime.

Break even underlying is 57.90

Risk Vs Reward at a full loss is 500.00 for 35.00
Probability of win = 89%

That's the idea.
Don't trade with funds you can't lose.
This is not a reco.