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r/options
Considering SPCX 130 put sale
Investor summaryNeutral
Author considers selling SPCX 130 puts for $8 premium but remains cautious due to unclear IV metrics and high skew post-IPO.
Bull points
- Selling 130 puts offers a high premium of $8 due to elevated implied volatility.
- Options are expensive, providing good income opportunities for premium sellers.
Bear points
- Stock is still 15 dollars away from its IPO price, indicating potential downside risk.
- IV metrics are unclean and skew is likely huge due to lack of options trading history post-IPO.
- Relative expensiveness of options is unclear, making risk-reward difficult to assess.
Post body
130 put pay $8 premium, even though IV deflated where it was. Stock is 15 bucks from the IPO price, might just wait till it gets there.
The IV metrics still not very clean, since options trading only a few days, there is no history. I mean the options are still expensive, and skew is probably huge. But it's not clear how expensive on relative basis.
https://preview.redd.it/sz1gn5385v8h1.png?width=403&format=png&auto=webp&s=0629786e315a080c384ad7075482de04b7bbc5e7
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