[Opening Straddle on STEC Inc (STEC)]
Dear Member:
STEC Inc (STEC) has recently moved up on good earnings. Implied volatility is relatively low and statistical volatility relatively high which presents a set-up for a straddle in which I buy both puts and calls at the same strike in the same month and look for a sharp move in either direction and/or a strong move in volatility to attempt to achieve a profit. Direction is not as important in this play as is movement.
I am placing an order to simultaneously buy to open the Nov 12.50 calls (SQRKV) and buy to open the Nov 12.50 puts (SQRWV) at a limit of $3.90.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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