Very sleepy day today at the market. Perhaps the selloff is taking a bit of breather...
Which raises the question: what about the market crush? Aren't we supposed to experience one?
But the news about inflation is not a propaganda. It's real and the only way to slow it down is to raise the interest rates, which will hurt many, and ultimately cause the market to go further down.
So what's my trade for today?
I decided to take a risk with an earnings on a stock that has a fairly stable movement: #HPQ (#HewlettPackard). There is nothing fundamental about this trade. It's purely a volatility play: after earnings we can expect the volatility to crush, which will make the options lose their value.
Trade Type: Short Strangle
Strike: $33 / 45
Expiry: 15 Jul
IV Rank: 67.1
Cap Req: $392
Annualised Prof at Expiry: 112.%
IMPORTANT: studying adjustments or closures of previous trades enables all of us to learn a great deal. Take a look at other trades from today:
What a winner!
This one is closed at $0.22 for an annualised profit of 2980%.
Note: I actually made an admin error as this trade was a June trade not July.