David,
The idea that MMs don't price in our favor on low liquidity options came to me, too. I almost mentioned it in my post, but then deleted it: if they get too far out of line, someone should arbitrage them back to reality, and I would think that would hurt them. Perhaps, in the low volume options, the MMs are simply gambling that the buyers will panic before this happens.
And I've got to admit that I'm thinking of selling for that measly $18 bucks, because Edify is starting to look short term oversold to me. If it goes back up, even for a few days, this sideshow is going to hose me: by the time it comes back down, a lot of the time premium will have eroded. Methinks I'll hang in there for a couple of more days, as the downturn may have a bit more legs in it, and the puts, now ITM should track the stock more closely.
Wish me luck, Tuck |
