It's a classic call sellers set up. A market with overwhelmingly bearish fundamentals and depressed prices catches a break. Speculators hear bullish news and jump all over it. Prices surge, volatility and open interest advance and the public rushes in to buy calls. Then reality sets back in. Moments like these provide opportunity. A core tenet of options trading is: If the public is driving price in the opposite direction of fundamentals, the market is ripe for taking premium.
展开▼
