As I suspected last week, we had a bit of tension release at the market today.
Many of the stocks last week went up way too much way too quickly so it was almost inevitable that we would see the market going down a bit this week.
Fortunately I managed to profit from it through my SPY trade from Friday.
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?
#AMD (#AdvancedMicroDevice) $65 put expiring on 03/02/2023, right after the earnings. The stock was at $77 a couple of trading days ago so I have this feeling that the stock is ready to march higher soon. I selected a short expiration hoping for a quick profit, but if it doesn't work out then I will have plenty of opportunity to roll out to March and collect heaps more premium.
The stats
Trade Type: Short Put
Strike: $67
Expiry: 03 Feb
Delta: 21
IV Rank: 32
Premium: $0.92
Cap Req: $905
Annualised Prof at Expiration: 928%
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-20230127
Rolled:
None.
Watch more detail here:
Let me know what you think.
Perfect trade!
Closed it at $0.47 for an annualised profit of 1815%.