Nowadays as the market moves further up I am increasingly anxious and reluctant to sell put options because I am quite confident that we will see a downwards move again very soon.
The VIX is, once again, below 20, which is a bit of a relief compared to the near 40's recently but I believe that this is the time for option traders to pile up on cash and wait for the volatility to jump up again.
However, there are always stocks with elevated volatility and in my opinion the safest strategy at the moment is to look for stocks that seem expensive and have an elevated volatility.
Having said that, I would stay clear of energy stocks for the time being due to the ongoing war in Ukraine.
So what's my today's pick?
#MOS ( #TheMosaicCompany ). They produce fertilizers and their share price was below $40 two months ago and now it's trading near $70. The last time its price was around $74 was back in 2011 and the IVR is fairly high at 60.2 so it stood out to me in recent days as a good prospect for a May $90 call option. The reason why I chose to go significantly higher than 1SD (Standard Deviation) is because the risk/reward ratio is still attractive.