7th week of closing down. It would certainly stress those who buy stocks but options traders can profit nicely from the high volatility.
Having said that, I also copped a big loss with NFLX as it just fell off the cliff. Fortunately my trade was a risk defined trade so my max loss was limited and offset by the wins on my other trades.
So what's my final trade for this week?
Now that the volatility jumped up again, it's time to sell an SPY strangle again.
The stats
Trade Type: Short Strangle
Strike: $350 / 420
Expiry: 17 Jun
Delta: 1.8
IV Rank: 71.8
Premium: $3.71
Cap Req: $4510
Annualised Prof at Expiry: 107%
IMPORTANT: Studying previous trades can teach us a lot. Here are my other trades for today, including the big loss on NFLX and a big win on MNST:
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220329
https://www.tycoonitos.com/community/market-comments/market-comments-20220506
https://www.tycoonitos.com/community/market-comments/market-comments-20220512
https://www.tycoonitos.com/community/market-comments/market-comments-20220428
Rolled up my put side to $384 for $0.44 credit.
Current position: short Mar $384p/424c.
Total credit: $26.83
Rolled up my put side to $380 for $0.37 credit.
Current position: Short Mar $380p/424c
Total credit: $26.39
Rolled up my put side to $375 for $0.34 credit.
Current position: Mar $375p/424c
Total credit: $26.02
Rolled to March $370p/424c for $0.12 credit.
I chose not to go for more credits but widen my strikes as much as possible as I am expecting a volatility expansion soon.
Total credit: $25.68
Rolled up the put side to $375 for $0.58 credit.
Current position: Feb $375p/$410c.
Total credit: $25.56.
Rolled up the put side to $370 for $0.41 credit.
Current position: Feb $370p/410c
Total credit: $24.98
Rolled up my put side to $365 for $0.42 credit.
Current position: Feb $365p/410c
Total credit: $24.57.
Rolled up my put side to $361 for $0.34 credit.
Current position: $361p/410c
Total credit: $24.15
Rolled up the put side to $358 for $0.80 credit.
Current position: $358p/410c
Total credit: $23.81.
Rolled to Feb $350p / 410c strangle for $0.89 debit.
Total credit: $23.01.
Rolled down the call side to $405 for $0.50 credit.
Current position: Jan $374/400.
Total credit: $23.90.
Rolled down the call side to $405 for $0.51 credit.
Total credit: $23.40.
Rolled down the call side to $412 for $1.02 credit.
Total credit: $22.89.
Rolled up the put side to $375 for $0.52 credit.
Total credit: $21.87.
Rolled down the call side to $420 for $0.68 credit.
Total credit: $21.35.
Rolled up the put side to $370 for $1 credit.
Total credit: $20.67.
Here is an exciting chart that shows my performance with this deal:
Blue candlestick >> price movement
Continuous lines >> my option positions
Dotted line >> Premium collected
Rolled to Jan $360p/425c for $1.08 credit.
Total credit: $19.67.
Rolled up the put side to $380 for $0.59 credit.
Total credit: $18.59.
Rolled up the put side to $375 for $0.59 credit.
Total credit: $18.