The relatively sideways action today in the overall market worked for me but it also feels like that it's just the 'calm before the storm'.
As mentioned yesterday, the market is waiting for Powel's speech on Friday so I don't expect large movements till then. My feeling is that the Fed will continue massaging the numbers in such way that will keep the markets and people relatively calm but at some stage the reality will kick in and it won't be pretty. For this reason it's critical not to be over exposed.
So what's my trade for today?
#MOS (#TheMosaicCo). The price ballooned from $52 to $60 in 3 days so I thought I'd try my luck with a naked call at $70 hoping for a quick reversal.
The stats
Trade Type: Short Call
Strike: $70
Expiry: 16 Sep
Delta: -16
IV Rank: 36.7
Premium: $0.64
Cap Req: $610
Annualised Prof at Expiry: 167%
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-20220802
https://www.tycoonitos.com/community/market-comments/market-comments-20220815
Let me know your thoughts.
Nice winner!
Closed at $0.20 for an annualised profit of 439%.