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Is it time to sell FFH?


indirect

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I don't know what's going on with the market for 2011 SHLD puts, but you can effectively write the $40 strike SHLD put and use the volatility premium to buy the same amount of notional upside in the 2011 $330 strike FFH call.

 

Which is riskier, SHLD at $40 or FFH at $330?  At the March bottom SHLD was going for about $35, FFH was about $211.

 

 

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Guest kawikaho

2011 is a far way out.  Anything could happen that far away, although, I highly doubt SHLD will drop below the strike price. 

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