This is a catch up post as I did not have the time earlier.
My closed deals for the week:
It was a strange week and 3 out of my 4 closed deals required some adjustments and the tides in my favour to produce a bit of win.
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?
I did a double calendar on #NKE (#Nike) hoping for a quick win before earnings. I sold the Feb 17 $117p/125c strangle and bought the Mar 24 $117p/125c strangle. The idea is that the Mar 24 expiration is right after the earnings so the strangle should keep its value while the Feb expiration is likely to expire worthless. If not, then I can roll it to the following week.
Trade Type: Double Calendar - Feb 17 / Mar 24
Strike: $117 / 125
Expiry: 17 Feb
IV Rank: 15
Cap Req: $679
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.