Another year has concluded and if you are not managing your own money then I encourage you to think about this: the absolute top analysts, the celebrated ones, who make millions every year, forecasted the following for 2022:
Source: https://www.reuters.com/business/wall-street-analysts-2022-outlook-sp-500-2021-11-16/
Millions are listening to these top analysts' on a daily basis and make investment decisions based on what they say. It's a risky strategy as their forecasts as as good as anyone's out on the street.
So if that's the case, then why wouldn't you make your own forecasts and follow your assumptions instead of paying all sorts of fees for the so-called 'experts'?
Options trading is a great way to generate healthy returns and even if you get something wrong time works in your favour.
For me, it was another successful week: I closed three trades all of them with fine profits.
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?
#WDC (#WesternDigital) is once again in the basement so I am taking a shot at it with a $30 put option expiring in Jan.
The stats
Trade Type:
Strike: $30
Expiry: 20 Jan
Delta: -29
IV Rank: 49.6
Premium: $0.87
Cap Req: $485
Annualised Prof at Expiration: 312%
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/daily-trades-20221213
https://www.tycoonitos.com/community/market-comments/daily-trades-20221223
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
Watch more detail here:
Let me know what you think.
Perfect trade!
Closed at $0.40 for an annualised profit of 707%.
Thanks for the words. Happy New Years!