The last of the X-ray body scanners has been removed by the TSA. The maker of the devices, OSI Systems Inc. (OSIS) is in the news, so it’s time to look at what kind of strategies are available.
Implied Volatility in June in 47.93%(+/-5.548) and 45.86% in July (+/-8.002). There are two options available.
SELL -1 VERTICAL OSIS 100 JUN 13 60/65 CALL @1.37 LMT
BUY +1 CALENDAR OSIS 100 JUL 13/JUN 13 55 PUT @1.00 LMT
The 60 call has a 37.56% chance of being ITM in 22 days. The spreads are wide so working the order would be necessary.
The calendar is a bearish bet over a longer period and might work out well since the front month volatility is higher.