We are hanging in there... under the $416 resistance line that I drew a couple of weeks ago. I hope that we won't break through it as I am generally short at the moment.
Unfortunately for me, the option pricing indicates that there is a stronger chance of an upwards move. The price at the time I took the screenshot was $413.05 and we can see that the ATM (at the money = $413 strike) call pays $0.38 more than the put.
How do I manage my positions in this situation?
I roll the put side up.
So what's my trade for today?
#NVDA (#Nvidia). It dropped 6% today so there is a 93% chance of profitability on a short put with Aug expiration.
The stats
Trade Type: Short Put
Strike: $155
Expiry: 19 Aug
Delta: 7
IV Rank: 35.9
Premium: $0.61
Cap Req: $1551
Annualised Prof at Expiry: 131%
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:
None
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220622
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Perfect trade!
Closed at $0.27 for an annualised profit of 400%.