Frankly speaking, it was good to see the market dropping a bit today and am hoping that it will fall further to balance out the large rally over the past 2 weeks. The VIX has also increased, which is another sign that we can expect prices to fall in the coming days.
So what's my trade for today?
I decided to go for another #ARKK (#ARKETF) strangle. There is nothing special about this trade. It's almost the same as the one from June. 82% POP (Probability of Profit) is attractive. It's one of those safer trades that I do not expect to be fast.
Trade Type: Short Strangle
Strike: $35 / 60
Expiry: 16 Sep
IV Rank: 47.7
Cap Req: $457
Annualised Prof at Expiry: 161%
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.
It's a winner.
Closed at $0.69 for an annualised profit of 128%.
I could have held it for much longer but I wanted to take off some risk and move my capital elsewhere.