Another upwards move. No comment. :)
All I could do is to repeat myself about the crazy (unjustified) rally over the past 5 weeks, but I won't go down that path.
However, there is something really interesting I thought I bring to your attention: BBBY.
I haven't read about it just yet but it feels like that a bunch of bored retail investors with too much spare cash are having a bit of fun torturing large hedge funds with short positions. These types of moves are called short squeeze.
So what's my trade for today?
#XOP (#OilGasProducersETF). I am a bit bullish on oil and gas due to the geo-political dramas but then the poor shape of the global economy represents a downwards pressure. When we have to large forces pulling the prices in the opposite directions then the premium for strangles tend to be pretty high.
The stats
Trade Type: Short Strangle
Strike: $115 / 160
Expiry: 16 Sep
Delta: 0
IV Rank: 24.6
Premium: $2.13
Cap Req: $1366
Annualised Prof at Expiry: 178%
I made no adjustments today as I am still a bit optimistic that we will have a correction this week.
Let me know your thoughts.
Beautiful winner!
Closed at $1.16 for an annualised profit of 132%.
Rolled up the put side to $125 for $0.55 credit.
Total credit: $2.68