Thursday, May 01, 2008

ER plays on WLT and BOOM

Well, here we go again: picked BOOM because it is a very volatile one (I vaguely remember Razor cut himself a quick 5-6 points profit last Q); picked WLT because it has been on the tear and it could move big after ER. Below are the entries:

BOOM ER play -- Long Straddle Strategy
** Bought 5 May 45 put -$1000 ($2, 71)
5 May 45 call -$1875 ($3.75, 70)
Total risk: -$2875

WLT ER play -- Long Straddle Strategy
** Bought 2 May 70 put -$910 ($4.55, 61)
2 May 70 call -$510 ($2.55, 59)
Total risk: -$1420

IV are high for both setups so I might be dragging my feet here. Good sign that as of now BOOM dropped over 10% in AH, need to see good movement on WLT too..

Things are definitely looking very well for bulls, but why the heck I feel so reluctant to go long here?

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