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Old 11-16-2007, 03:46 PM
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Re: Credit Spreads

Also just got filled on a call vertical that I sold on SOLF for 40 cents, 17.6% return with 76% probability based on the vols.



It's a DEC and any close under the top of that range we've got will give me max profit. Note, too, IV is really pushing high. These folks report earnings on Tuesday and right now it's looking like "smart money" knows what those earnings are gonna be and they want to be poised for taking it lower. When the report is released and vol gets crushed even if earnings are good I won't get hit too hard with it. High odds setup here.

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