During today’s internal Analyst Call, JC asked me what I was looking at for a trade today.
I mentioned I hadn’t fully fleshed it out yet, but whatever I did would likely involve selling premium. With the $VIX hovering around 24 at the time, it felt like the edge was on the side of the premium sellers.
At this point, Steve Strazza piped in that he liked Freeport McMoran $FCX as a likely candidate for a bounce here. And then JC got excited about the idea of a bullish Risk Reversal spread to express this idea.
Selling elevated puts premium to offset the cost of a long call position? Yes… I liked the sound of that.
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