Market comments 20221104

'Another week, another dollar.'

It's been another epic week for me personally which was fuelled by multiple fortunate earnings plays and the major drop in the overall market volatility.

What puzzles me is that the volatility has been falling for about 3 weeks despite the obvious troubles in the US and global economies.

In fact, the SKEW, which measures the risk of outlier moves, is at all-time-high, which means that the market is very much comfortable with the way the global economy is going and the players don't see any major shake-up in the near-term.

That's good news for most traders.

I continue being more bearish and feeling more comfortable selling calls then puts, however as an options trader, I take whatever the market gives me.

I rolled two of my forever-hold index positions (SPY, IWM) to December and both positions are looking great. I was able to widen my strikes substantially for a bit of debit but because I have plenty of premium in those trades it did not matter.

So what's my trade for today?

#LVS (#LasVegasSands) Dec $46 call. I have traded LVS numerous times over the past 3 weeks and was able to earn decent profits on each of the trades. The stock jumped today over 6% so selling a call provided great premium.

The stats

Trade Type: Short Call

Strike: $46

Expiry: 16 Dec

Delta: -26

IV Rank: 49

Premium: $1.02

Cap Req: $407

Annualised Prof at Expiry: 218%

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-20221020

https://www.tycoonitos.com/community/market-comments/market-comments-20221025

Rolled:

https://www.tycoonitos.com/community/market-comments/market-comments-20220520

https://www.tycoonitos.com/community/market-comments/market-comments-20220524

Let me know your thoughts.