CPSL's implied volatility has shot from 60% to 116%. As some of you know, I am long 800 shares, for 4.87, and short 7 September 5.00 calls, and 1 Mar 09 5.00 call.
This last week, CPSL was seeing some drop off in price on low volume, and I was waiting to see if it would find some support at prior its prior support, right around 4.00. But on earnings announcements, the stock shot back up from 4.20 to 5.50 and back down to close the day out at 4.96.
I've got my eye on September 15th earnings report. Earnings are never a great cause for the stocks movement. The last few days volume has picked up to over two million shares (usually it trades 400k give or take, with an average of 1.2 million).
I am not going to going to pick up any more long shares unless the price goes less than 4.20. However, the high implied volatility would make for some good short options plays. I just hope the stock stays below 5.00, so I can write some new calls with this IV.
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