It was another pretty calm day: the VIX moved up a tiny bit but so did the market. It gives me the feeling that tomorrow the market will drop a bit and the VIX will continue moving up. Hopefully I am wrong but it's hard to imagine that all the inflationary and geo-political tensions are already priced into the market. I am still very much bearish.
So what's my trade for today?
#AMZN (#Amazon) finally split (read about stock splits below) so now it's affordable to trade on smaller accounts. The IVR is very high, which means the premium it pays is also very high. I am bullish on the stock but given the overall market condition I decided to stay neutral with a delta neutral strangle.
AMZN Daily Chart
Trade Type: Short Strangle
Strike: $107 / 144
Expiry: 15 Jul
IV Rank: 68.9
Cap Req: $1248
Annualised Prof at Expiry: 207.%
IMPORTANT: we can all learn loads by keeping an eye on older trades. Today I closed one trade and adjusted two: