mikes on-air trades in a google docs spreadsheet
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3apr - mike khouw briefly covered STD in the options action segment of fast money tonight. here is the clips.. Options Action clip . i dont follow this stock but lets pull up the chart. mike casually said if you own the stock you should sell it and instead:
Buy the June 8 call for .25
This seems to be a proxy for the hubbub going on in spain. pretty low tech, low premium trade. Stock rebounds you can get a quick double. Im going to assume that you own the stock, would like to keep owning it and are considering mikes trade. Instead do a "risk reversal"
Sell the Jun 6 call for .15
Buy the Jun 8 call for .20
you might get a lucky fill and fill for zero if you try.. but assume a .05 debit.
Remember my premise is you would like to still own the stock..so you sell like mike says and with this risk reversal you can own the stock lower at 6 vs where is is now.. if it rebounds then you profit quicker since you are only paying 5 cents for the 8strike call vs the call only for .25. You have to have the margin/buying power to buy the shares at 6, but that should not be a problem since you just sold the shares like mike said.
with mikes trade you risk only .25 ($25 per lot), with mine you risk only .05 ($5 per lot)
