Yo Pit Crazies,
In Big Money Flow, with Mark and myself, we run into some pretty crazy trades.
The market is crazy enough, so I figured I would show a picture of wild pricing.
What is this mystery stock?
Really wild pricing.
500% volatility pricing and strangely free money?
Let’s check it out.
Tricida Inc. IV is trading 500% in Some Strikes
Yes, this volatility is out of sight.
Most, like the you-only-live-once (YOLO) crowd, are going in hard for the calls and puts on the outer edges of 2.5 puts and 25 calls.
Yes, you heard that right, 2.5 puts and 25 calls.
The funny thing is, the stock is only trading $12, but the 12.5 straddle is around $13. If the stock went to zero, the straddle would make .50 … but if the stock went to the moon, which is what the 25 strike YOLO buyers want, the straddle could be a big loser.
Big money flow in Tricida, Inc. (Ticker: TCDA)
The solution is to buy stock and sell the straddle. That makes it a yield trade to Nov with almost no risk downside and a $1300 payout potential on the upside.
If you want to see Mark and I go through this trade idea,click here. Just a little more market crazy in a crazy market.
The Rundown
Nitro Trader
Mark closed some Alphabet Inc. (Ticker: GOOGL) call butterflies for 26% gain after closing Apple Inc. (Ticker: AAPL) put flies for a 50%+ gain last week. One long, one short and two wins!
To Your Trading Success,
AG