It's so easy a caveman can do it. This has been occuring the last few months. Someone do the math...
It feels like the surges on the bounces have stopped !!
Caveman, It has worked a few times for me. I am worried it will not work the next time as their 4thQ results start to leak out !! It will be bad.
here's some other math: sell the Mar $2.50 put naked at .40. One of 2 scenarios plays out:1) CBG stays above $2.50 til Mar expiration. You keep the .40. Congrats, you're now trading like a hedge fund manager2) CBG goes below $2.50 at Mar exp, puts get exercised, and you get to buy CBG at $2.50. Congrats, you're now trading like a hedge fund managerTheta King
$2 >>> $3$1 >>> $2