Strait of Hormuz headlines pushed IV on energy names to max this morning. XOM, OXY, CVX, EOG, DVN – IVR at 100 across the board.
Sold the XOM $149P expiring Friday for $1.22 credit. Stock sitting at $151.75 so about 1.8% OTM, 74% POP. That's $122/contract for a 4-day hold with XOM needing to drop less than 2% to put you at risk.
The bull case for selling: elevated IV from a geopolitical scare that historically reverses fast. The bear case: these headlines can escalate just as quickly and oil is already moving.
Curious what other people are seeing – anyone else legging into energy premium right now or staying away until there's more clarity on the oil situation?
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Posted by half_off_implants