Wealth Builder Community

Have we reached the end of this mini bull-run? In the last few days the market opened lower and made its way up to close very close to the previous day's close. Today was the same story but in the last 30 minutes an intense sell-off took place and the volatility jumped up. I don't think that anyone knows what triggered it but it doesn't look good for the bulls. For those, who are new to my daily market comments, I place and document one of my options trades each day with the objective of helping everyone learn how to trade options. What's my trade for today? #AMZN (#Amazon) looked attractive for a naked put expiring in March. The $90 strike I selected is close to 10% below the current price and offers a 79% probability of profit. The stats Trade Type: Naked Put Strike: $90 Expiry: 17 Mar Delta: 22 IV Rank: 20.4 Premium: $1.28 Cap Req: $1156 Annualised Prof at Expiration: 139% IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info. Closed: https://www.tycoonitos.com/community/market-comments/market-comments-20220613 Rolled: https://www.tycoonitos.com/community/market-comments/daily-trades-20230208 Watch more here: https://youtu.be/gnwvUqNwQGs Let me know what you think.

This is a catch-up post as I did not have the capacity to document my trade on 15/Feb. Seeing #X (#UnitedStatesSteel) creeping up to $30 I decided that it was time to sell Mar $32 call option. The stats Trade Type: Short Call Strike: $32 Expiry: 17 Mar Delta: -33 IV Rank: 2.7 Premium: $0.79 Cap Req: $385 Annualised Prof at Expiration: 250% IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info. Closed: None. Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220421 https://www.tycoonitos.com/community/market-comments/daily-trades-20230209 https://www.tycoonitos.com/community/market-comments/daily-trades-20230210 Let me know what you think.

Once again the CPI numbers are worse than what the market anticipated but still the market almost closed in the green. I find the situation scary and I would not be surprised if we experienced a bigger selloff sometime in the near future. My trade for today was an #ABNB (#Airbnb) calendar spread with the anticipation that the price will drop a bit after the earnings. As we can see it on the daily chart, at the end of last week the price dropped suddenly but then it bounced back this week and closed at just under $121 so I was hoping that after the earnings the price will go back down to about $110. Unfortunately, by the time I am writing this post the earnings results are already known and the price jumped to just under $133. Fortunately my max loss is limited to the amount of debit I have in the trade and because my long position expires in April, I still have 2 more rolls to reduce my debit and potentially even get out on top if the price drops. The stats Trade Type: Put Calendar: short Feb $110p; Apr $110p Strike: $110 Expiry: 17 Feb Delta: -11 IV Rank: 40.6 Premium: -$3.98 Cap Req: $398 Annualised Prof at Expiration: ? IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info. Closed: None. Rolled: https://www.tycoonitos.com/community/market-comments/daily-trades-20230213 Watch more detail here: https://youtu.be/4iUFiXikB00 Let me know what you think.