Dave,
Haven't heard from you for a while, so I hope you're well.
Yes, that's what I meant by saying the vols are up. I won't do any option position until I know the exact OCT earnings date and it's relationship to the split date. Typically, there's a run before the actual split (witness GALT, which starts trading the the split shares on Monday....), so I don't want that to work against me as a option writer.
Second point worth mentioning is that there is a tendency to see acceleration once the stock splits. Now you have twice as many shares, and twice as many CC's against you. However, what was a 5 point move in the stock from (ie, from 90 to 95), now becomes a 2.5 point move, (45 to 47.5). That's easy to do for VTSS, especially at those levels, where it's more affordable for everyone to get some (especially those clamoring to get it because they missed it before....).
So.....just be careful with your option plays. It might NOT be prudent to SELL CC's that far out, but the NOV and DEC's calls might be worth a look depending on the if you think the stock will tank after they announce earnings (like it's done previous to this....).
I think that you'll potentionally give up more upside than it would appear. 12 is really 6..., that's what I am saying.
Regards,
Steve |
