Hi John,

I have a question about historical volatility vs implied volatility. If a stock has high HV – 51% and IV of 45% for the option. So low volatility relative to historical. Can we still do straight call/puts or is still better to do a spread? The example is NEM for January calls.

Thank you

Steve

Hi John,

I took the TSN trade. Dec 52.5 calls.

I closed the trade Friday, because my position was up over 50% in a few days. Only to see it jump Monday on news of some plant closures. And almost hit your initial profit target of 58.

Any thoughts on holding winners longer?

I’m going to do my best to be on the call tonight.

Thank you again,

Steve