Now that the VIX continued going down it's time to cash in on a few deals and reduce exposure.
But before I list all the trades I closed today, let's take a look at my trade for today: #WMT (#Wallmart).
It's once again a stock that doesn't need introduction. What brought it to my attention was the fact that it's severely beaten up after their earnings. But quite often when a stock is beaten up straight after the earnings we can experience a bounce back. It's not guaranteed though. For example, PYPL was smashed after the earnings and then continued sliding down to levels that nobody thought it would reach.
So the idea with these types of trades is to take the risk with a naked put well below the fallen price. In the case of WMT the price fell from $149 to $131. That's already more than 12%. I selected the June $120 put, which is another 7% compared to where the price was before the earnings.
WMT Weekly Chart
Trade Type: Short Put
Expiry: 17 Jun
IV Rank: 80.6
Cap Req: $1533
Annualised Prof at Expiry: 79%
It's worth taking a look at all other adjusted or closed deals as we can all learn from them.
So let's take a look at the other trades that I closed today: