Volatility Du Jour, FSLR
So that call I made the other day, the one about FSLR options on the cheap side? And if only FSLR could break free of the recent range, they would scream for some options?
Um, not so much.
Stock races through and the rush commences. Let’s see who can sell volatility down the fastest.
This chart does not reflect the actual action in the Junes as the ATM’s closed yesterday at a low 50’s volatility.
A couple anecdotal observations about frothy sort of stocks like this. The stock lifts abate during upswings in volatility, not implosions. At least that is my experience. Right here right now the “obvious” trade is to go long some gamma, maybe long calls vs. short stock on a ratio. They tend to stop rallying however when that trade becomes difficult and the board makes you pay up.
May 16th, 2008 at 11:52 am
Adam,
A friend told me that he saw where options activity overall was higher than normal yesterday, suggesting that more hedge funds are getting into the fray again.
Any truth to that?
You have good taste in women. Bravo.
May 16th, 2008 at 12:06 pm
tanks, lol.
It’s possible volume was high, but remember it’s expiration today so you often just get rolls et. al. distort the *real* picture around expiry.
If hedgies are getting back in the game, they’re selling every option that moves. At least that’s what the prices say.