The position in Vimpel Communications (NYSE:VIP) is not trading as expected today. The share value dropped 2% but there was little constructive movement in the option prices. Currently, there is a $0.10 spread between the (bid/ask of the) suggested strikes, and that is probably due to a reader's "net-credit" order for $0.15. If the stock remains in a small range, the market-makers will simply "hold the line" at that price until another trader provides a suitable offer for one of the positions. Although it is unlikely the spread will be available on a simultaneous order basis, we would appreciate a note from anyone who is filled at the target credit.
Fortunately, the Novellus Systems (NASDAQ:NVLS) spread was much more accessible and based on the stock's early rally (and the day's range for both option series), it appears that at least a few readers achieved the suggested credit. In addition, the new "supplemental" play in Google (NASDAQ:GOOG) was quite active with hundreds of contracts crossed at favorable prices. This type of liquidity makes life much easier for spread traders but the volatility in GOOG is so difficult to manage that we simply can't recommend the position to less-experienced subscribers.
Again, we would like to hear about any filled orders to confirm these prices as we don't physically trade the spreads suggested in the MCM Portfolio. Please send your comments to: Contact Support