u/value1024 ·
Reddit — r/options
· May 27, 2026 at 20:21
· ⬆ 16 pts
· 💬 6 comments
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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