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.
BBBY Daily Chart
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.
XOP Daily Chart
Trade Type: Short Strangle
Strike: $115 / 160
Expiry: 16 Sep
IV Rank: 24.6
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.