Quite a fluctuating day today due to the Fed announcement.
Fortunately the VIX (fear factor) dropped a fair bit but it's still very high and we are certainly not out of the woods yet.
So what's my trade for today?
Given the very high volatility levels across the board, it's pretty easy to pick a stock that can generate great return with high probability. During times, like the one we are in at the moment, we can go for stocks that normally have very low IVR, such as #DIS (#Disney). I am a bit bullish on this stock, given the massive fall in the past few days so I selected the July $85/115 strangle, where the call side ($115) is at 5 delta (~95% probability).
DIS Weekly Chart
Trade Type: Short Strangle
Strike: $85 / 115
Expiry: 15 Jul
IV Rank: 36.4
Cap Req: $959
Annualised Prof at Expiry: 140%
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