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.
LVS Daily Chart
Trade Type: Short Strangle
Strike: $28 / 40
Expiry: 15 Jul
IV Rank: 55
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.