As anticipated the market moved down a bit, which normally means that the volatility moves up.
As I mention nowadays pretty much every day, I am being extra careful so today I selected a stock that almost everybody in the world knows and have their products. But before we get to it's worth take a quick look at the natural gas situation.
... then I looked at the weekly chart too and I immediately chickened out for a couple of reasons. First, if the price went up to $40 (like in the second half of 2018) than the trader must have significant cash reserves in their account to wait for the price to come back down. Second, the war with Russia poses a massive risk in both oil and gas. I don't like the unpredictable nature of the situation.
UNG Weekly Chart
Last year I made a fair bit of money trading UNG when the price was around the current level, however the volatility was significantly higher and I could sell the $30 call and still collect a fair bit of premium. This time the May $30 call would only fetch $0.13, which is not worth it given the risk, the fees and the capital required.
So what's my today's selection?
#INTC ( #Intel ). I don't think that this company needs to be introduced to anyone. They are investing billions into new chip factories to have better capacity to meet the ever increasing demand so the long-term prospect of this company is quite bright. Today the stock dropped by $0.82 so I thought it's a good time to sell some naked put.
Is this the best timing? I highly doubt it but I look at this trade as a run-to-safety given the strong performance and market stake of this company.