It was good to see a bit of downwards move after a week of growth. For options traders the direction of the move often doesn't really matter but large movements are a challenge.
With the VIX down at $23 I am increasingly nervous. Another volatility expansion can shake the market up again so we must stay disciplined and reduce our exposure.
So what's my trade for today?
#LVS (#LasVegasSands). I traded this many times and now that the earnings is behind us, I feel that a wide strangle is relatively safe option with great return potential.
Trade Type: Short Strangle
Strike: $33 / 45
Expiry: 19 Aug
IV Rank: 29.4
Cap Req: $390
Annualised Prof at Expiry: 241%
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.
Closed at $0.49 for an annualised profit of 431%