I am wondering what could go wrong with this idea:
sell a BeCS Nov 18 80/95 for $3.75. My thesis is the market is going to react strongly up and down after the election. This is like a gigantic earnings trade. I expect to buy back at considerably less. I would enter now with a small starter position expecting the premium to run-up until a day or two before election. Am I going to be playing red/black, or does it sound like a winner?