A surprisingly quiet day today, which makes me question: is this the calm before the storm?
We might see the market remaining calm for a few days but as soon as the news comes out about another rate rise, we will see the market rattle again. For this reason, I certainly wouldn't call it the bottom of the bear market.
What's my trade for today?
I could not resist but to do an earnings play on #NKE (#Nike). The premium, as expected, is very high even for a wide strangle.
The stats
Trade Type: Short Strangle
Strike: $70 / 130
Expiry: 19 Aug
Delta: -14
IV Rank: 96
Premium: $1.87
Cap Req: $1105
Annualised Prof at Expiry: 117%
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-20220520
Let me know your thoughts.
Perfect trade.
Closed at $0.54 for an annualised profit of 4393%
It doesn't get any better than that.