Relatively big move to the upside today, which was certainly good for most of the positions I recommended in our Live Trading channel over the past few days.
What's my today's pick?
#XBI. I already traded this twice since I started my daily posts but could not resist to trade it again given the great results on the previous two trades. Also, yesterday the price was smashed pushing the IVR even higher. I chose the $75 put as it's still a fair bit below the current level so I'd like to think that it's a pretty safe trade.
The stats
Trade Type: Short Put
Strike: $75
Expiry: 20 May
Delta: 15
IV Rank: 62.4
Premium: $1.2
Cap Req: $755
Annualised Prof at Expiry: 187%
Also worth mentioning that the NFLX (Netflix) earnings is taking place as I write this post and after being smashed (-30%) during the previous earnings, it is being absolutely hammered again and is currently down by another 22%. The trade I had will be a guaranteed loser so tomorrow I will have to see what can be done to minimise the loss.
https://www.tycoonitos.com/community/market-comments/market-comments-20220329
But it's not all bad news.
Closed trades today:
https://www.tycoonitos.com/community/market-comments/market-comments-20220405
https://www.tycoonitos.com/community/market-comments/market-comments-20220325
https://www.tycoonitos.com/community/market-comments/market-comments-20220408
Let me know your thoughts.
This trade needs more time.
I already went inverted but because I only had $7.07 credit and the width of the inverted strangle is $10 (75 call / 65 put) I would have lost close to $3.
So instead of the guaranteed loss, I decided to give it more time and roll it out to June 64 put / 74 call.
The roll cost $5.45 but that's fine. We still have a total credit of $1.62 and have a much better position than the inverted strangle.