Credit goes to TurboTech for this particular idea, which passed under my radar ... .
With an implied volatility rank of 89 and (yes, your eyes don't deceive you) an implied volatility of 259%, ACAD is ripe for premium selling.
Here are the metrics for the setup:
ACAD April 15th 11 short put
Probability of Profit: 78%
Max Profit: $111/contract
Buying Power Effect/Max Loss: ~$990 (In this particular case, your max loss (which would occur if the stock went to "0") is the value of the strike ($11) minus the credit received for the short put ($1.11) or $9.89 times 100 shares or $989.
Notes: I'm going to keep an eye on price here and may look to take it off at something exceeding 50% max if I can. It is, after all, $9 below current price and some $4.50 below the 52-week low ... . I put this on earlier today for $112, but it's possible that you could get a fill for more than that with this little down turn we had today.
With an implied volatility rank of 89 and (yes, your eyes don't deceive you) an implied volatility of 259%, ACAD is ripe for premium selling.
Here are the metrics for the setup:
ACAD April 15th 11 short put
Probability of Profit: 78%
Max Profit: $111/contract
Buying Power Effect/Max Loss: ~$990 (In this particular case, your max loss (which would occur if the stock went to "0") is the value of the strike ($11) minus the credit received for the short put ($1.11) or $9.89 times 100 shares or $989.
Notes: I'm going to keep an eye on price here and may look to take it off at something exceeding 50% max if I can. It is, after all, $9 below current price and some $4.50 below the 52-week low ... . I put this on earlier today for $112, but it's possible that you could get a fill for more than that with this little down turn we had today.
