The Fed's comment about the unlikely larger than 0.5 increase in interest rates calmed down the market so we have seen a pretty substantial rally in the closing hours.
So what's my trade for today?
#CCL ( #CarnivalCruise ). I like to trade this stock as it's very cheap and offers great ROI potential.
The stats
Trade Type: Short Put
Strike: $15
Expiry: 20 May
Delta: 20.6
IV Rank: 54.7
Premium: $0.52
Cap Req: $199
Annualised Prof at Expiry: 596%
Other adjustments today:
https://www.tycoonitos.com/community/market-comments/market-comments-20220502
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220429
The price moved up a fair bit so I sold the $12 call against it for $0.20.
Current position: Feb $15p/12c.
Total credit: $3.18.
I am not giving up on this just yet :)
I let the call side expire worthless and rolled the put side to Feb for $0.05 credit.
Total credit: $2.98.
Rolled to dec and sold the $11 call for $0.24 credit.
Total credit: $2.93
Not much luck with this stock.
Rolled the put to November but because it is so deeply in the money I did not get any additional premium. I also did not want to sell call against I thought it was too high of a risk for a few cents. I wanted to roll to Dec but no monthly option was available at December.
Total credit remained $2.69.
This one requires significant patience. Fortunately it doesn't consume much capital so I am not stressed about it.
Rolled to October $15/15 for $0.21 credit.
Total credit: $2.69.
After today's drop it's hard to imagine that the stock will go down much further.
Rolled to Aug $15/11 inverted strangle for $0.21 credit.
This will be a long recovery.
Total credit: $2.48
Rolled to Aug $15/14 inverted strangle for $0.28 credit.
Total credit: $2.27
Rolled to July $15 and also sold the $14 call (inverted strangle) for $0.92 credit.
Total credit: $1.99.
This trade didn't work out as intended but rolling to June gives us another $0.55 cr.
Total credit: $1.07