Here is one more in the cheap calendar "near arbitrage" type trades.
Last time I was actually at a net credit, and this time I paid a penny plus commissions to get exposure to $OSUR.
Ideally this stock moves to just below $5 by the June expiration and then once those calls expire, it explodes before the July expiration.
To me, these are the type of convex small risk / huge potential that retail traders often either ignore or miss. It is hard to find $20K worth of notional value in biotech for a month by risking $50+commissions.
This mispricing happened because a large order moved the June $5 calls today but July did not move much, so I sold the expensive options and bought the relatively cheap ones in July. It took some work to get a fill on the short leg, but even though 5 minutes passed, the stock was unchanged, so for the pedantic types saying I took a risk by legging into it - this is the only way to trade these since there is no way to get a fill as a spread at one penny.
Good luck to all, cheers!
https://preview.redd.it/1gqs0fhhmq3h1.png?width=820&format=png&auto=webp&s=73c96da67c37b8476115887f728a428352772381
**UPDATE: the demand for the July options exploded, as I suspected so this spread is currently priced at a theoretical 20 cents, which is up 20X from my trade, before the commissions and fees, but up over 8x after commissions. I will wait a bit longer for the options to get back in line and then close it out.**
https://preview.redd.it/7jzaxphk3a4h1.png?width=740&format=png&auto=webp&s=61159923f1c8c28ea3f31f80c3966b540e76fd2c