I didn't mind seeing the massively uneventful day today at the market after the big sell-off in the past week or so.
Many of the traders are already taking breaks, which was very much reflected in the low trading volume.
For those, who are new to my daily market comments, I place and document one trade a day with the objective of helping everyone learn how to trade options.
What's my trade for today?
#NKE (#Nike) earnings. I am a bit bullish on the stock so instead of selling a strangle, which is what I normally do for earnings plays, I just sold the Jan $90 put.
Trade Type: Short Put
Expiry: 20 Jan
IV Rank: 61.8
Cap Req: $903
Annualised Prof at Expiry: 162%
WATCH THIS TRADE HERE: https://youtu.be/qCPiDcBgwQ8
Let me know what you think.
Closed at $0.10 for an annualised profit of 4,608%.