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.
VIX Daily Chart
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.
BKR Daily Chart
Trade Type: Short Strangle
Strike: $22 / 30
Expiry: 19 Aug
IV Rank: 50
Cap Req: $260
Annualised Prof at Expiry: 253.%
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