VIX is down, SPY is down >> after the ugly week, we can expect a bit of upwards movement on Monday, but I would not go long. For sure.
There are a few positions I currently have open, which could already be closed for profit but it's best to wait for the volatility to drop so that we can take home more cash.
Some of my positions I had to roll down as it seems like there is no bottom in sight yet.
So what's my trade for today?
#MNST ( #MonsterBeverage ). Earnings just came out and the stock rallied nearly 4.4%. Do I see it going up much higher? Absolutely not. When the inflation and higher interest rates are squeezing the average household then I don't see them keep buying items that are really not necessary. Nevertheless, the IVR is still very high so it's perfect for a strangle, but instead of playing the June expiration, I wanted to play the May and just let it expire. Also worth noting that this is not an ideal stock for option traders due to the low volume, which makes it a bit more risky, but I am up for it.
The stats
Trade Type: Short Strangle
Strike: $75 / 90
Expiry: 20 May
Delta: -22.6
IV Rank: 65.1
Premium: $1.57
Cap Req: $1400
Annualised Prof at Expiry: 292%
Other trades:
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
https://www.tycoonitos.com/community/market-comments/market-comments-20220330
A beautiful winner!
This strangle expired worthless producing an annualised return of 292%.
Would I do this trade again?
No. I must admit that I forgot to check the volume: there is barely anyone trading options against this stock so it would have been difficult to make adjustments.