Are we about to see a massive spike in VIX again or the bear market ended?
I saw a headline today saying that an indicator, that never failed, signalled the end of the bear market.
Frankly speaking, I don't believe it. In my opinion, we still have way too many factors that can push the market lower. Let's wait and see.
According to the VIX daily chart, we can expect a spike very soon.
So what's my trade for today?
#BKR (#BakerHughes). The earnings came out in the morning and the price dropped a fair bit in terms of percentage points. The IVR is still over 50 so a wide strangle seemed like a really good option here.
The stats
Trade Type: Short Strangle
Strike: $22 / 30
Expiry: 19 Aug
Delta: -1
IV Rank: 50
Premium: $0.54
Cap Req: $260
Annualised Prof at Expiry: 253.%
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-20220713
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
https://www.tycoonitos.com/community/market-comments/market-comments-20220630
Nice winner!
Closed at $0.29 for an annualised profit of 390%.