Massive 16% rally in the market over the past 2 weeks and the SPY is only $4 off a seemingly solid resistance line. Will the market fall next week? I am quite certain that it will, but it's always just a guessing game.
It is quite fascinating though that the market seems to have a gravitational pull upwards.
So what's my trade for today?
#ROKU. It has seen much better days in previous years going for nearly $500. If someone told you last year that it will be trading at $65 in mid-2022, they would have ridiculed you. I don't know much about ROKU but one thing is certain: the option premiums are very high even after the earnings. For this reason I selected a fairly wide strangle.
ROKU Daily Chart
Trade Type: Short Strangle
Strike: $45 / 95
Expiry: 16 Sep
IV Rank: 31.7
Cap Req: $656
Annualised Prof at Expiry: 151%
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