I must say I am surprised about another rally. Rising interest rates and rising stock market. Earnings are good. Have we really hit the bottom of the bear market?
For the past few weeks, I have been saying that I do not believe so but seeing the tape action indicates that we might have.
But how is that possible?
Interest rates are rising. There is a major war with Russia. There is an energy and food crises. I go to the grocery and buy 3 bags of fruits and veggies instead 6 and pay the same. Property prices are dropping.
And the list goes on...
I still believe that the current rally is false.
But only time will tell.
So what's my trade for today?
It's been a very busy day with loads of rolling and managed to close a few trades and reduce my exposure. But what I opened today was #META (#Facebook). The price dropped after the earnings and I thought I try my luck with a naked put in the front month (Aug) at 1 SD (standard deviation = 16 delta).
The stats
Trade Type: Short Put
Strike: $145
Expiry: 19 Aug
Delta: 16
IV Rank: 36.4
Premium: $1.7
Cap Req: $1645
Annualised Prof at Expiry: 171%
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:
https://www.tycoonitos.com/community/market-comments/market-comments-20220714
https://www.tycoonitos.com/community/market-comments/market-comments-20220715
https://www.tycoonitos.com/community/market-comments/market-comments-20220726
https://www.tycoonitos.com/community/market-comments/market-comments-20220727
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Perfect trade: quick in and out.
Closed at $1.43 for an annualised profit of 150%.