When the VIX expands to the level that we have seen today, options traders have to fight their instincts: our instincts dictate to stay away, while the statistics show that this is the best time to sell premium (options).
Well, I kind of cheated by selecting #SLV ( #Silver ) for today. Its IVR is still fairly low as it doesn't move much, which makes it a boring but potentially lucrative business. I deployed the same strategy as before (see here) by selling a wide strangle hoping that sometime in the near future I will be able to narrow it for additional credit.
The stats
Trade Type: Short Strangle
Strike: $20 / 24
Expiry: 17 Jun
Delta: 0.7
IV Rank: 22.4
Premium: $0.55
Cap Req: $267
Annualised Prof at Expiry: 145%
Let me know your thoughts.
Additional adjustments:
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
As I suspected, I had to wait a long time for this trade to close.
Trading silver is never exciting but we are in this game for the money.
Closed at $0.33 for an annualised profit of 97%.
I could have rolled it to next month but I have too many positions open at the moment so I am happy to walk away from it.