Jul. 6 at 9:40 PM
$BULL It surprises me that there isn't a higher IV in the longer term options for this stock. One can get in-the-money calls a year out with high degrees of leverage for very little extrinsic premium, which to me looks like a good bet with a limited amount of downside, particularly for diagonal spreads with a short call a week or two out. One could earn 200-300% return on this if the stock goes absolutely nowhere for a year (which of course it isn't likely to do). And easily double your principal if the stock crosses into the 20's at any time during that year. There are no guarantees in the market, but this strikes me as an excellent risk/reward for the patient investor who wants 2-3% of their initial investment returned to them each week from the short call sale of the spread.
