Monday, August 22, 2011


MGM has lost 42% in the last month, and their Sept 17 options trade at a fairly high implied volatility. This may be a good covered call move. Looks like the in-the-money $9 call at $0.85 premium has $0.70 in time value over Monday's closing price -- Or about an 8% return in just under a month. And I think I have better odds at the blackjack table than MGM trading at $8.30 in a month from now. Losing money would be tough on the bet.

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