Epic day for me personally. With the volatility dropping I was able to close a few of my trades with fine profits.
But I would not rush to the conclusion that the bear market is over. In my opinion, we are far from it. For this reason I continue being bearish and look for opportunities to sell call options as my number one preference.
So what's my trade for today?
#UAL (#UnitedAirlines). The earnings will take place before the Oct monthly expiration so I chose to go with the Oct 14 expiration with a far out of the money call option at $45 strike. I don't expect this trade to be a quick one and there is a chance that the stock price will go higher, however I am totally comfortable taking the risk with a trade that has 84% probability of profit and great ROI.
Trade Type: Short Call
Expiry: 14 Oct
IV Rank: 36.6
Cap Req: $390
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.
Let me know what you think.
Closed at $0.29 for an annualised profit of 343%.