After last week's blood this week continued the selloff, but in the last hour the market miraculously turned around. Did common sense prevailed or just the robots playing a game? Who knows. Frankly speaking, I wish that algo-trading was illegal as I believe they are the drivers of more and more extreme price movements.
I wish there wasn't such a big time-zone difference between the US and AUS as I would have been able to take advantage of the market rally in the last hour but it is what it is.
So what's my trade today?
#CL ( #Colgate ). It certainly won't be my favourite trade of the year but given that I have quite a few open positions at the moment, I had to go with a trade that I felt was relatively safe. The stock dropped a fair bit over the past couple of weeks and it appears that it's been playing a rollercoaster in the past nearly 12 months between $74 and $86. Considering that it's at $75.16 I thought I would sell a naked put at $70 just in case the stock decides to break through the support at $74.