RIG a play on IV skew

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I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan
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I have opened a PCCRC on RIG today.
Here is the confirmation from Interactive Brokers:
This time, I have the long calls are at a higher strike price than the remaining legs:

I am interested in the volatility skew. Note the differential between short and long-term IV. As usual, the IV on the long options is below 40%:

I have recorded this trade in Platinum and placed in the folder that is open for users to share.



If you'd like to have access to my share folder, follow the instructions in my previous article. Here is the HRL:
http://stockoftheday.blogspot.com/2006/07/current-and-archived-trades.html
I have carefully made this trade Delta neutral, and Vega sensitive. If is quite possible that RIG, being an oil stock may jump in either direction. For now I expect a sideways movement, and a decrease in front month volatility and increase in long term volatility until both IV meet.

My long-term Elliott wave count on RIG is a double three, and the minimal targets in this count was met long ago. However, there is nothing that indicates that RIG count not go a lot higher. This ambiguity can only be resolved with a short-term analysis


My short-term count indicates that a small correction may still be in progress. A wave Y would still be in the future, but for now, I expect sideways motion. The details of the count should be clearer and clearer in the weeks ahead.


Please let me know if there is any further details I could provide.