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