Not much to say about today's market activity. It felt like a lot of traders are on holiday. Perhaps they are already taking some time off given that 4th of July is next Monday.
So what's my trade for today?
I made a few adjustments (see links below) and sold a far OTM (out of the money) naked put against #MO (#AltriaGroup). In the beginning of May the stock was over $57 and now it's below $42. It was a very steep drop so it should be ripe for some stabilisation soon. But to make sure that I am safe, I sold the $35 put which is pandemic level pricing. It's not the most profitable trade but it appears very safe and still offers 90% annualised return if I hold it till expiry.
The stats
Trade Type: Short Put
Strike: $35
Expiry: 19 Aug
Delta: 12
IV Rank: 77.3
Premium: $0.44
Cap Req: $351
Annualised Prof at Expiry: 90%
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-20220606
https://www.tycoonitos.com/community/market-comments/market-comments-20220420
https://www.tycoonitos.com/community/market-comments/market-comments-20220504
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
Let me know your thoughts.
Closed for a quick profit at $0.29 for an annualised profit of 1560%.