Bucket 3: New Trade

  • Bucket 3, new trade: short WBMD June 30 calls
  • The stock is down 26% today on news of the CEO resigning and the company not being up for sale any longer.  Sales guidance is very murky at best
  • This is a classic Bucket 3 options strategy  trade for us where we sell far out of the money calls on a stock that fell hard.  Implied volatility is amped, giving us better premiums to sell.  Technically the stock doesn't look good and it can rally a little over 21% against us at expiration and we still make money.

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