There was a lot of talk about a 'black Monday' so many piled up on the short side only to see the market rallying.
It's the ideal environment for options traders. The volatility (IVR) is relatively high, which means we can collect more premium and have wider strangles and lower risks.
So what's my trade for today?
Last Friday I played FDX, which was beaten up badly so today I decided to play another big fish that was also beaten up in recent days. #ADBE (#Adobe). It purchased Figma for around $20bn and the market didn't appreciate it much, but reading the tape it appears that perhaps the market moved on and we will see the stock bouncing back a bit.
ADBE Daily Chart
Trade Type: Short Put
Expiry: 21 Oct
IV Rank: 48.5
Cap Req: $2608
Annualised Prof at Expiry: 140%
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.