As an exersize, I would like to get the opinion of forumites as to how they would trade this situation:
The stock is ELN and it is trading at $26.76. My view is that it has swung low and I anticipate that it will trade to in excess of $30 within 4-10 days. Trading as low as $25.40 will cancel my analysis.
So as a straight out stock trade we have a projected risk/reward of roughly 2.5:1 as a minimum. Of course stops don't protect from gaps down.
My question to the forum is how you guys would trade this scenario with option...long or short options, spreads whatever...the relavant quote attached.
I don't have access to previous iv data, but it is currently, obviously, quite high.