The Fed raised the interest rates by 75 basis points, which was the market expectation but the market went absolutely crazy.
If we just look at the daily chart, we can't actually see how volatile the day was but the 15 minute chart reveals it all.
On days like this I personally prefer to stay out of action as you could easily find yourself on the wrong side of the fence.
The good news is that after Fed announcement there is a strong likelihood of the market returning to its pre-announcement level within 24-48 hours.
So what's my trade for today?
#AAPL (#Apple) short put. The stock dropped over $3 today and the volatility jumped to over 64. If there will be a bounce back tomorrow then this might become a quick trade.
The stats
Trade Type: Short Put
Strike: $135
Expiry: 21 Oct
Delta: 14
IV Rank: 64.7
Premium: $1.34
Cap Req: $1352
Annualised Prof at Expiry: 121%
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-20220901
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Let me know what you think.
Decent winner!
Closed at $0.14 for an annualised profit of 116%.