What a day... After yesterday's large fall the market looked like crashing again but then ended up closing high.
The VIX is down a bit but the SKEW jumped, which means the outlier risk is increasing. Need to be careful with another sudden move and I would be surprised if it was an upwards move.
So what's my trade for today?
#UNG (#UnitedStatesNaturalGas). Large move upwards today and the volatility is very high. Sold the 22 delta call, which gives me about 89% probability of profit.
The stats
Trade Type: Short Call
Strike: $42
Expiry: 21 Oct
Delta: -23
IV Rank: 73.4
Premium: $1.04
Cap Req: $954
Annualised Prof at Expiry: 108%
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-20220908
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
Let me know what you think.
Fantastic winner!
Closed at $0.72 for an annualised profit of 1224%.