Disliked{quote} Hey SD, I don't normally buy options but I think this is a pretty good trade ...Ignored
I will watch that Karen video tomorrow. I registered myself on tastytrade site today... Watched dough TV today, love that Slim guy.
Today he had a list of stocks where he is bearish, and I looked at my charts also... Really like the situation on YUM and UPS, could be nice downfall price action there, so that made me think - OK, how would I trade that with options, using what I have learned so far?
Both stocks have very low IV, so I will exclude bear call spreads, right (or not?)... So what would I buy then? I recalled some of Cecil Gee ideas about butterflies, and wanted to make a put butterfly on those two, but the market is very wide there (big bid-ask spread), and option volume is pretty low. If those two were something else, more liquid, then I would be interested in YUM 68/70/72 put fly, and UPS 94/96/98... Conclusion: work with the most liquid names, and that's it.
Hope is dangerous in this game.