(for details pls visit www.OptionPundit.net)
Have you noticed IV in BSC options recently? Attached chart from Ivolatility shows IV profile as of friday close >70%. However, as of now ATM levels are trading above 100%. There may be differences in the way IV is calculated by Ivolatility or ToS. Albeit, it offers great option premiums to play. It has tempted me to open a trade on BSC which is listed as per below.
Here is a directional trade (BSC 100 Put calendar (buy Sept/Sell Aug), debit $3.75/spread) that I am looking at for a very short period and I shall keep on adjusting as it either continue to fall or rise. The breakevens as well as maximum profits are all listed.
There is a watch-out though: BSC should not crash in a day. As long as it is either falling or rising slowly, I shall be able to make good money. My startegy on this trade is to keep it as delta neutral as possible and continue to add theta.
Disclaimer: I have invested my money into this trade and I know what I am getting into. Pls ensure you understand the risk associated with options or calendar spreads before investing should you choose to do so.