I wasn't expecting the market to drop by this much today but I was certainly expecting it to drop closer to the end of the week.
What makes me uncomfortable is the trend that the VIX has been displaying since October last year. The cyclical waves are fine but it seems like every month the VIX bounces back up from a higher level. I am hoping that this is just a false alarm and we will see the VIX coming back down to around 20.
VIX Daily Chart
So what's my trade for today?
#AMD (#AdvancedMicroDevices). This stock dropped over 6% due to a potential data breach. If it's not a big issue then I expect the stock to bounce back very quickly (potentially tomorrow) so I sold a naked put.
AMD Daily Chart
Trade Type: Short Put
Expiry: 15 Jul
IV Rank: 63
Cap Req: $701
Annualised Prof at Expiry: 257%
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