Hi IG,
First, I can't give you any direct advice, but can frame my answer in terms of what I would do if I were looking at buying puts on CIEN.
First, the VIX has been pretty low (until Friday) so the volatility factor in options is on the smaller side, which makes buying them right now preferable to selling to open.
Second, we're about midway into the February option cycle, so IMO, buying Feb puts is still OK if I feel the move in CIEN will occur within the next week. Why pay for more time by buying the March series?
Third, if CIEN is currently 100 and I think it will hit 87, I'd personally buy ATM or slightly OTM puts, like the Feb 100's or 95's because the delta is higher (the value of the option will rise at a faster rate per one-point move down in the underlying) than significantly OTM puts.
I see there's a large OI on Feb CIEN puts at most strikes, and lots of activity on Friday, so you're not alone in your thinking. I hope this response was a wee bit helpful. |
