Update: February 4th, 2020
Really cool lesson here. Of course, I’m early to the short setup, and the next day the stock is up over 120 points.
But the trade is at breakeven. Why?
The changes in implied volatility.
When the trade was put on, here were the IV:
– Feb 530: 68.7%
– Mar 530: 79.2%
And here’s where they are now:
– Feb 530: 131%
– Mar 530: 101%
Update: Feb 27th, 2020
Closing the trade for profits.