It's a fascinating and scary world out there nowadays. It's hard to get things done due to major labour and material shortages, there are strikes popping up everywhere due to the rapidly deteriorating living standards and the stock market is still holding up.
Some of the stock are seemingly at very attractive levels for a bull run but every day I am surprised by the action. INTC is a perfect example. I sold a naked put at the end of March when it was over $51. Since than it's been sliding down to just over $30. It's also worth noting that it was over $56 earlier this year. How far can it slide? Can it reach the GFC levels of $12? Who knows...
The challenging factor is that many of the stocks display a similar pattern.
So what's my trade for today?
Considering that I am very bearish I decided to sell a naked call on another stock that is likely to suffer due to the challenging economic outlook. #RCL (#RoyalCarribean). It was all the way down to $32 a few weeks ago and slowly creeped up to $42. Selling a wide strangle would have had a great return potential but I did not feel taking the risk on the downside. Not even at $25.
Trade Type: Short Call
Expiry: 21 Oct
IV Rank: 63.5
Cap Req: $421
Annualised Prof at Expiry: 129%
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.