Sold SFLY Uncovered Calls
I’m still betting against SFLY. It found support not far below its current price, but I think the upside is very limited. I lowered my targeted strike and today while SFLY was trading at 16.27 I sold three April 17.50 calls (QFYDW) on it and received $257.75 after commissions.
Those three calls are the total volume of calls today at that stike. Being in such an illiquid option isn’t always the best seat to be in for an option seller. If it moves against me, I might have a hard time closing it out.
The SFLY chart shows it’s hitting resistance again to the top side. Fundamentals show that it’s had good growth, but I believe they can’t maintain that growth at the current profit levels. There’s too much good competition that sells the same products cheaper. Throw in a five year PEG of 1.50 and SFLY is overvalued at the current price, much […]
Original post by Alex Fotopoulos