Super quiet day today with minimal movement. It's certainly the calm before the storm: this week is full of earnings of huge companies. We will see lots of movement and I expect the volatility (VIX) to jump up too.
So what's my trade for today?
Based on the success of my IBM earnings trade last week, I thought I would try my luck with something similar against #GM (#GeneralMotors).
The stats
Trade Type: Custom
Strike: sold Aug $34.5 / 34.5; bought Sep $34 / 35
Expiry: 19 Aug; 16 Sep
Delta: 2
IV Rank: 54.2
Premium: $-0.76
Cap Req: $124
Annualised Prof at Expiry: ?
Let me know your thoughts.
Closed at break even.
This was a testing of a new strategy and I have a feeling that I would have been better off selling the same strikes as the ones I bought.
For this reason I decided to get out of it and try it again with another paper.