The market continues to seem way too calm for me considering a few factors: war, inflation, earnings season. The tech stocks rallied, which was good for me personally, and the VIX is down again.
One of the biggest news is that Elon Musk bought a 9% stake in #Twitter, which is a significant move for two key reasons:
1. it gave Elon more say in the company management
2. he just handed a big smack to his #1 enemy: the SEC, which constantly tries to control his rights to freedom of speech.
I do understand that the SEC is trying to prevent Elon and other big names to manipulate the market but they are trying to achieve their goals by limiting certain individuals' freedom of speech.
It's a tough world out there for the regulators nowadays as technology took away their powers. The days of tightly controlled media is replaced by platforms, like Twitter, where anyone can have a say and those with lots of followers can really manipulate the market.
But let's get back to business.
What's my today's selection?
I would say that after moving up 27% today, Twitter naked calls are good prospects but I would go super cautious and go way outside of the 1SD. Thanks to the big news the volatility jumped from 15 to 79 within seconds, which means the option prices also jumped significantly. The April $65 call has a 97% probability of profit so it's pretty much a no-brainer. Although it only gave me $0.38, I am thinking that if the stock comes down, I might sell some put options too and just let it expire.