The market did end up a bit lower than yesterday but it wasn't alarming at all. In fact, the VIX dropped a fair bit, which gives me the impression that we can expect the market to go up tomorrow. But it's always just a guessing game.
So what's my trade for today?
#SLV (#SilverETF). This is not the most exciting paper to trade but the IVR is a bit higher than usual so the potential return is nice even for a relatively wide strangle. As usual with SLV, I don't expect this trade to be fast. SLV is also good to diversify one's portfolio.
The stats
Trade Type: Short Strangle
Strike: $18 / 22
Expiry: 19 Aug
Delta: -1
IV Rank: 28.2
Premium: $0.57
Cap Req: $221
Annualised Prof at Expiry: 162%
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-20220602
https://www.tycoonitos.com/community/market-comments/market-comments-20220615
https://www.tycoonitos.com/community/market-comments/market-comments-20220613
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
If you are only keen to look at one of the previous posts then I strongly suggest the second last one:
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Let me know your thoughts.
This one didn't work out.
Closed at $1.08 for an annualised profit of 7%.
Better luck next time.
Rolled up the put side to $19 for $0.28 credit so I am now inverted $19/18.
Total credit: $1.12
Epic collapse in Gold and Silver...
Rolled down the call side to $18 for $0.27 credit.
Total credit: $0.84