META (Facebook) has been killed after the earnings. In fact, it has been destroyed severely this this.
In the beginning of February this year the stock was at $328 and today it has gone below $97.
That's a collapse of over 70%!!!
It makes Bitcoin and its friends look like a safe investment.
Is it time to try to catch the falling knife?
Well, it's a risky venture but sometimes I can't resist the temptation so I actually sold the Nov $80 put against it thinking that surely it won't fall another 17% in 21 days. Well, we'll see.
So what's my trade for today?
#AMZN (#Amazon) earnings with 1 day till expiration. I went for the $90 put, which is over 22% below today's open. That's an enormous move for an over trillion dollar company, but not impossible. If it doesn't work out then I will have plenty of opportunity to roll to either Nov or Dec.
AMZN Weekly Chart
Trade Type: Short Put
Expiry: 28 Oct
IV Rank: 102.1
Cap Req: $900
Annualised Prof at Expiry: 1947%
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.