Another epic week: I was able to close 7 trades and all of them are with decent profits.
With a massive earnings week heading our way I am expecting a few exciting trades but often the 'boring' trades are the best ones as they are stable and still provide great return on investment (ROI).
Apart from a great win on my KMX trade from yesterday, I did a bunch of adjustments just to follow the flow of the market.
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?
#W (#Wayfair) Feb $60 call. It was only yesterday when I closed my strangle after going from $44 to $39 but today the price almost hit $49 and stopped nearly at $47. When I see a large move like this then I tend to go for it with a naked option. The earnings is after the Feb expiration so I am very confident in this trade.
W Daily Chart
Trade Type: Short Call
Expiry: 17 Feb
IV Rank: 41.5
Cap Req: $945
Annualised Prof at Expiration: 174%
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.