Looks like I picked the wrong day to stop sniffing glue. And selling calls on broken stocks. HANS basically ended as a small loser.

My ideal play in one of these is to short calls into some lift off the open. Volatility also opens overpriced as option buyers want a cheap shot on the stock so I want to fade that.

The catch though is sometimes they keep going. Which explains why I like doing this in calls and not stock. If they keep going up, the volatility tends to sag and you do not give back as much when you cover.

My “cover” discipline is a break above the opening range, defined as the first 10-15 minutes of trading.

HANS turned out strange in that it neither worked particularly well or particularly poorly. It lifted off the open, which let me short some calls at decent prices. Then nudged up more and ultimately broke out a bit, which got me to chase stock. But then it really didn’t do much after that. And the volatility declined, but not that much. So scratch to small loser, nothing from nothing and more a waste of time than anything else.