Interesting times ahead. With the US provoking China with a visit to Taiwan, who knows how China is going to react. Are we going to see Taiwan being run over by China the same way as Ukraine being run over by Russia?
It's all dirty politics and I hate it, to say the least. But I have to pay attention to it as it affects the markets big time.
For example, for the past few days I have been itching to sell naked put against FXI but frankly speaking I have no idea what would happen to that index if the US kicks out all the publicly traded companies from the US stock exchanges as a retaliation to steps that the Chinese may take. So I have not pulled the trigger yet.
So what's my trade for today?
I have never traded #TLT (#20yrTreasury) so I thought it's time to get my hands dirty. According to a study I came across, the two ETFs have moved in opposite directions more than 60% of the time so using TLT should serve as a light portfolio hedge.
The stats
Trade Type: Short Strangle
Strike: $110 / 130
Expiry: 16 Sep
Delta: 5
IV Rank: 40.5
Premium: $0.92
Cap Req: $1413
Annualised Prof at Expiry: 53%
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-20220713
Rolled:
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
https://www.tycoonitos.com/community/market-comments/market-comments-20220630
Rolled to Feb $109p/111c for $1.79 credit.
Total credit: $5.27.
I forgot to document this trade from 07/12/2022:
Rolled up the put side to $109 for $0.80 credit.
Current position: Jan $109p/109c
Total Credit: $3.48.
Rolled to Jan $107p/109c for $0.28 credit.
Total credit: $2.68.
Rolled to Dec $107p/104c for $0.05 credit.
Although this roll didn't give me much credit, it enabled me t go from $99 call to $104.
Total credit: $2.40.
Rolled down the call side to $99 for $0.45 credit.
Total credit: $2.35.
Added a $104 call option for $0.39 to this position to ease the pain.
Total credit: $1.90.
Rolled to November $107 for $0.20 credit.
Total credit: $1.51.
Rolled the put side to Oct $108 for $0.39 credit and closed the call side as a winner.
This trade is now a naked put and am banking on a bounce back so that I can sell a call again at a higher price than what it is today.
Total credit: $1.31