My yesterday's trade idea is playing out quite well. To remind, I recommended that investors looked at Under Armour's (UA) calendar spreads. The point was that options with a particular expiration date were overpriced relative to other expiration dates, while having the same strike prices. Obviously, one would sell the overpriced option (adjusted for the time value) and buy the cheaper one to lock in a fixed profit. The key here is to find stocks with violent moves and analyze their options. Typically, short-term options would have spiked after a swift move in the underlying, while their "brothers" with longer duration would likely not move as extremely. Today, I would like to focus on Michael Kors's (KORS) options after the stock finished over 6% above yesterday's closing price. As you would guess, this does not happen very often with like stocks: $CPRI, Capri Holdings Limited / 60 As a result, call options spiked. To be honest, I wanted to write about a covered call idea on this stock yesterday but did not have time. The expected return over a one-week period (the duration I deliberately selected) would have been around 6% - the same as it was today. This would have been the quickest profitable trade idea I ever wrote about. Well, did not happen. The trade I am proposing today involves June 10th and June 17th $45.50 call options: (Source: optionsprofitcalculator.com) The risk-return matrix is clearly showing signs of overvaluation in the June 10th options: (Source: optionsprofitcalculator.com) Despite the fact that I would have to pay a debit balance of around $27 per contract (minimum 100 options), which usually does not happen when you sell longer-term options and buy short-tenor ones, the risk return profile of this trade is very attractive through next week: assuming there is a 50-50 chance (which is a huge margin of error) that the stock remains between the break-even prices ($44 and $47, respectively), I automatically get a theoretical edge of about $9 per contract. The risk-return ratio is roughly 2:1 in this case, which is why this trade idea looks very appealing to me. By the way, I looked at the same trade from a put option's perspective and found that it was marginally worse. Hence, doing the June calls' play definitely seems more attractive to me.What do you think?