Market comments 20220624

I was not expecting the big rally today but the beauty of trading options is that we can easily benefit from movement in both directions.

Today we are 21 days to the July expirations so it was time to roll my positions, which is always exciting as it gives us the opportunity to recentre positions.

So what's my trade for today?

#WFC (#WellsFargoBank). Earnings is coming up so the IVR is quite high enabling us to sell a very wide strangle and still collect a decent premium for very little capital allocation.

WFC Daily Chart

The stats

Trade Type: Short Strangle

Strike: $32.5 / 47.5

Expiry: 19 Aug

Delta: -3

IV Rank: 44.2

Premium: $0.78

Cap Req: $408

Annualised Prof at Expiry: 125%

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-20220504

https://www.tycoonitos.com/community/market-comments/market-comments-20220225

https://www.tycoonitos.com/community/market-comments/market-comments-20220419

https://www.tycoonitos.com/community/market-comments/market-comments-20220330

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