Big turnaround in the last 15 minutes of the trading day. I anticipated yesterday that we will see the market moving up but most of the day it was down.
Given that the VIX is also lower, we might see the market moving further up tomorrow but then I would prepare for the bears to take over again so I rolled down some of my call positions today.
So what's my trade for today?
#GM (#GeneralMotors). It's purely a safety zone. The majority of the experts are expecting a market collapse so one of the best stock to short are the automobile stocks. Shorting the stock would be a lot more expensive and risky than selling a call option far out of the money so I sold the Oct $45 call.
The stats
Trade Type: Short Call
Strike: $45
Expiry: 21 Oct
Delta: -18
IV Rank: 44.6
Premium: $0.51
Cap Req: $388
Annualised Prof at Expiry: 96%
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-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Let me know your thoughts.
Nice winner!
It took a bit longer then anticipated but I was able to finally close it at $0.22 for an annualised profit of 136%.