The craziest day ever!
Some of the older folks with over 40 years of trading experience said that they have never experienced such large movements in a single day.
First, the market dropped 2.8% then it rallied 4.5% and closed 1.18% higher than yesterday.
What kind of insane movement is this?
How can the market move trillions of dollars like that in a single day?
The funny thing is that probably nobody knows.
Sometimes it entertains me when I hear "experts" claiming that they know everything and with ridiculous confidence they explain every movement and make bold predictions. But the reality is that movements like this shows that neither the #fundamentalists nor the #technicals have the magic ball.
The market movements are random.
So how do we take advantage of this?
Just look at large movements that do not seem logical.
My today's pick would be #UL ( #Unilever )
Most stocks moved up today but UL dropped 4.15%.
I mean, we are talking about a company whose products are in every household around the world (if you don't believe me, just check your pantry and bathroom).
Why did it drop?
To be honest, I don't even care that much. If we play the April $47.5 put then we should be fine.
The stats
Trade Type: Short Put
Strike: $47.5
Expiry: 14 Apr
Delta: 37
IV Rank: 66.6
Premium: $1.2
Cap Req: $830
Annualised Prof: 108%
This trade would unlikely the fastest trade ever but who knows. The stock may bounce back tomorrow.
Another beautiful winner!
This one can be closed at $0.77 generating $43 profit on $830 in 24 hours.
Perfect trade! 😀