There were many big names last week saying that the market will likely drop another 20%.
The fact: the SPY moved up 3.5% this week and nearly 9% in the past two weeks.
Nobody knows anything apart from the bunch of insider traders who can obviously rip-off the market occasionally trading individual stocks. But even they can't influence the overall market.
This is why trading options is a beautiful vehicle to make money. Options traders place their bets based on sophisticated statistical calculations and the premium pricing is normally favourable to the sellers of options.
So what's my trade for today?
#MU (#MicronTechnologies). I have no directional assumption against this stock so a wide strangle expiring before earnings is a logical move.
MU Daily Chart
Trade Type: Short Strangle
Strike: $47 / 61
Expiry: 18 Nov
IV Rank: 44.7
Cap Req: $541
Annualised Prof at Expiry: 280%
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.