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The 52 wk range is [$1.69, $17.68], so this thing can move. I wrote about this one for TheStreet.com (OptionsProfits), so no specific trade analysis here, but I noticed REDF because of the vol difference that has opened up between the Jul and Aug downsides. Even more compelling, the last two earnings cycles in Jul have been 7-21-2009 and 7-29-2010. I see that their next earnings date is projected after the Jul options cycle (again), meaning that the vol difference between Jul and Aug (with Jul greater than Aug) may be worth trading. Let’s turn to the Skew Tab.
We can see the vol diff between the front two months on the 7.5 strike – it’s around 20 vol points. Now we can turn to the Charts Tab. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20 - blue vs HV180 - pink).
We can see the stock peaked at $17.98, less than two months ago (4-28-2011). Two days ago the stock closed at $7.62 and has recovered recently. Like I said, the stock can move. On the vol side, the IV30™ is about fair(ish) relative to the two historical measures.
Let’s look to the Options Tab for completeness.
This is trade analysis, not a recommendation.
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