The bulls were trying to push the market higher but once again the bears dragged them back down in the last half an hour of the trading day. I must say say I am increasingly bearish and expect at least a mini-crash sometime soon.
So what's my trade for today?
As I am committed to place one trade a day I am nowadays more keen to trade naked call options of stocks that are on or near their 52 week high. Given the high oil prices the most of the oil stocks are trading quite high so it was just the matter of selecting a solid company without the wild swings. #XOP (#Exxon) came to my attention. As we can see it on the below chart it is pretty much at the peak of all spikes over the past 20 years. Currently trading at $95 so selling a $110 call seems like a good option. The IVR is also over 50.
The stats
Trade Type: Short Call
Strike: $110
Expiry: 21 Oct
Delta: -17
IV Rank: 65.6
Premium: $1.03
Cap Req: $960
Annualised Prof at Expiry: 80%
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:
https://www.tycoonitos.com/community/market-comments/market-comments-20220420
Rolled:
None
Fantastic winner!
Closed at $0.68 for an annualised profit of 266%.