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Old 5th July 2013, 03:17 PM
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Considering there is still one week left for the grand Infy results announcement, I briefly considered a strangle again but I'm pretty sure it's not going to work this time around.

The IV is close to 65 one week prior to results announcement which is extremely expensive even as per Infosys standards. I don't expect as much a violent move as last time.

I think it would actually be a good trade to write an ATM straddle and buy it back after the results - play the IV crunch; but I neither have the financial muscle nor the courage to write a straddle so I'll pass this one.

I've given myself the luxury to watch the drama from the sidelines this time.

Last edited by arcus : 5th July 2013 at 03:23 PM.
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Old 10th July 2013, 12:43 PM
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There is an opportunity to write calls all the way till 3200. What do you think about doing the same above 3000?
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Old 10th July 2013, 04:28 PM
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There is an opporunity to write calls all the way till 3200. What do you think about doing the same above 3000?
I think it would be a good strategy to write the 3000 CE and 2000 PE. The CMP for Infy is currently around 20% away from both.

Write both a CE and a PE. So that if there is a sharp move in one direction, the other option written offers some protection.

I think its better that way than to write only one of them. I think both of those would expire worthless possibly making you around Rs 4500.

There is always risk involved in writing options but I'm guessing the R:R is favorable.

As I don't see any opportunity from the options buyer side, I'm skipping the Infy trade this time. Nevertheless, its possible to play the IV rise preceding the results announcement if you are an options buyer.

While its no always true, the IV usually rises the maximum just before results announcement. So it's possible to buy the options and sell it just before the results announcement which is when the fear/IV is usually the maximum.
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Old 12th July 2013, 10:40 AM
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There is an opportunity to write calls all the way till 3200. What do you think about doing the same above 3000?
As expected, I guess option writers are having the last laugh this time around.

Did you write any options?

Last edited by arcus : 12th July 2013 at 10:46 AM.
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Old 14th July 2013, 09:15 PM
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As expected, I guess option writers are having the last laugh this time around.

Did you write any options?
No. At this point my knowledge of F&O is very basic. So I do not want to take any trades until I learn more.

Like you had predicted, the volatility was already priced in this time for the options buyers to make any money.
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