On the surface it appears that there was not much action today again but when we look a bit deeper, we can see that the VIX jumped over 30 again and the SPY dropped over 2% only to recover later.
These are signs that make me tune my portfolios to be more bearish than bullish for sure.
So what's my trade for today?
The IVR of #AAPL (#Apple) jumped up a bit again so it's time to sell another wide strangle against it. Given that it's the largest company by market capital and it's a very popular, highly liquid paper, it should be quite safe to trade it.
Trade Type: Short Strangle
Strike: $110 / 160
Expiry: 19 Aug
IV Rank: 70.2
Cap Req: $1368
Annualised Prof at Expiry: 98%
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.
Let me know your thoughts.
What a rollercoaster ride. Time to exit.
Closed at $3.97 for an annualised profit of 11%.
After the epic rally now we are seeing the opposite.
Rolled down the call side to $175 for $0.40 credit.
Total credit: $4.55
7 weeks 32% increase in market value.
No comment. I don't know how it's justified, but it doesn't matter. It doesn't change the fact that my position didn't work out so I had to roll out 2 months.
Why 2 months?
Because I held onto this position all the way to expiry so rolling out to October made more sense than rolling to Sept and roll again to October next week.
Rolled to Oct $150/180 for $0.78 debit.
Total credit: $4.15
One last attempt to get out of this one this week.
Rolled up the put side to $170 for $0.59 credit.
Total credit: $4.93.
I am now inverted $170p / $165c. That's $5 so if the stock drops below $170 then I will be able to close it with a minimal loss at the end of this week.
Rolled up the straddle to $165 and sacrificed $1.73 credit.
Total credit: $4.34.
Why did I make this move?
Because the stock is at $165 and I had a $160 straddle with $6.07 credit so my break even points were $153.93 and $166.07.
After the adjustment my break even points became: $160.66 and $169.34.
It's a lot more favourable.
Rolled up the put side to $160 for $1.04 credit.
Total credit: $6.07.
Rolled up the put side to $152.50 for $0.31 credit.
Total credit: $5.03
I thought this is going to be an easy trade. Well, it didn't work out that way.
Rolled up the put side to $150 for $0.64 credit.
Total credit: $4.72.
Rolled up the put side on 21/07 to $140 for $0.34 credit.
Total credit: $4.08
Rolled up the put side to $137 for $0.68 credit.
Total credit: $3.74.
Rolled up the put side to $130 for $0.43 credit.
Total credit: $3.06
Rolled up the put side to $125 for $0.79 credit.
Total credit: $2.63