What an epic move up today... But the volatility remained high so I think it would be premature to call it the end of the bear market. The earnings season kicked off and some of the banks reported good results. A wide strangle in SPY is a great deal as we can expect the choppiness to continue at a daily level but I don't think that we will have much of a move overall in the coming weeks.
So what's my trade for today?
#BAC (#BankOfAmerica). It just had earnings and the results were good but because the overall market volatility is still high, the IVR of BAC is also still high. A wide strangle with 70%+ probability of profit pays really great premium compared to the capital the deal requires.
BAC Daily Chart
Trade Type: Short Strangle
Strike: $30 / 37
Expiry: 18 Nov
IV Rank: 51.8
Cap Req: $336
Annualised Prof at Expiry: 244%
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