The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- Strategic Mindset: Market neutral with possibilities of surges in volatility.
Target: Rio Tinto (RIO) trading at $53.99.
Commit Criteria: RIO implied volatility is overpriced relative to its forecast volatility of 4.58% over the time frame of this trade. We are looking for possible price movement but for it to stay within its $50 to $57.50 price range until the exit of this trade. This is a slightly more aggressive in the Top Gun Options Advanced Model Portfolio due to the strikes we needed to use.Tactic: Opening 20 RIO May 2012 Iron Condors (strikes [47.5/50/57.5/60]) for a $0.58 credit Tactical Employment of Iron Condor:
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