I must admit, I wasn't expecting the market to see a big rally like the one we have witnessed over the past 3 days. The volatility contraction allowed me to close some positions but others are being tested on the call side.
So what's my trade for today?
Not the best day to open new positions given that the volatility contracted and I believe it will jump up again in the coming days but there are still plenty of stocks with high IVR. For today I chose #LVS (#LasVegasSands), which is a casino group. I traded this stock many times with great success so I thought I would try my luck again with a wide strangle.
The stats
Trade Type: Short Strangle
Strike: $28 / 40
Expiry: 15 Jul
Delta: -10.4
IV Rank: 55
Premium: $1.52
Cap Req: $347
Annualised Prof at Expiry: 326%
IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info.
https://www.tycoonitos.com/community/market-comments/market-comments-20220426
https://www.tycoonitos.com/community/market-comments/market-comments-20220219
https://www.tycoonitos.com/community/market-comments/market-comments-20220420
https://www.tycoonitos.com/community/market-comments/market-comments-20220517
https://www.tycoonitos.com/community/market-comments/market-comments-20220330
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
https://www.tycoonitos.com/community/market-comments/market-comments-20220226
https://www.tycoonitos.com/community/market-comments/market-comments-20220504
https://www.tycoonitos.com/community/market-comments/market-comments-20220414
https://www.tycoonitos.com/community/market-comments/market-comments-20220525
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
Let me know your thoughts.
Another beautiful winner!
Closed at $1.17 for an annualised profit of 335%.
Note: I could have held onto this position longer but I felt like removing some risk from my portfolio.