[Opening Put Calendar Spread on Astrazeneca (AZN)/Buying Jan 45 Puts (AZNMI) and Selling Sept 45 Puts (AZNUI)/Spread order net debit limit $1.50 for the day]
Dear Member,
I am trying to get into this put calendar spread on Astrazeneca (AZN) again today. I am buying the Jan 45 puts (AZNMI) and simultaneously selling the Sept 45 puts (AZNUI) for a net debit of $1.50. I place this as a spread order so both legs are filled or none are filled (as happened yesterday). If filled, this spread makes money at expiration of the stock price is anywhere between about $43 and $47.99. The options are somewhat overvalued and there is a nice volatility skew in place between the two months I am trying to trade. An increase in volatility should help this volatility based trade.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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