Market comments 20220526

It was great to see the volatility contracting further today but the good news is that there are plenty of stock and ETFs out there with high IVR so it's certainly a fantastic time to make $$ trading options.

So what's my trade for today?

#UAL (#UnitedAirlines). The IVR is still very high so it allows us to sell very wide strangles and get decent profit for it. I selected the July $33 put, which is about 15% below the current price level so I consider it super safe. The call side is at $55, which is at 20 delta, so it's still pretty good. We do, however, need to be mindful of the upcoming earnings on 19/Jul, but the expiration is prior to the earnings.