What a huge rally today. Frankly speaking I wasn't expecting this and I am quite certain that we will see more downwards movement next week.
It's been a very successful week for me personally with many of my trades closed and most of them closed with substantial profit.
Next week I will consider going long on TLT with options that expire in 2025. TLT is at extremely low levels and for about $380 invested I could buy the 2025 Jan $90 call and sell the $100 call which provides a potential $1000 return. What needed for the trade to be successful is the recovery of the bond market, which will only take place once interest rates start to go lower. It's possible that 2 years is not going to be enough but if the market collapses sooner then the Fed will hit the panic button and TLT will skyrocket.
So what's my trade for today?
Earlier this week I had a successful bullish trade on LVS and now that the stock reached the high of it's recent channel, I thought it is time to be bearish by selling call option against it.
Trade Type: Short Call
Expiry: 18 Nov
IV Rank: 48.6
Cap Req: $454
Annualised Prof at Expiry: 207%
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 $0.21 for an annualised profit of 1367%.