Is the market sensing a bad CPI report, which will be released tomorrow?
That's a possibility.
Or is it the collapse of FTX and many other crypto exchanges?
Who knows, but the near-term future is not very bright for the bulls.
So what's my trade for today?
#GM (#GeneralMotors). I decided to go with a relatively stable company. It's not the best trade as the IVR is very low but the potential return is very attractive.
The stats
Trade Type: Short Strangle
Strike: $32 / 43
Expiry: 16 Dec
Delta: -7
IV Rank: 29
Premium: $0.91
Cap Req: $382
Annualised Prof at Expiry: 235%
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-20221011
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
Let me know what you think.
Perfect trade!
Closed at $0.59 for an annualised profit of 736%.
Rolled up the put side to $38 for $0.35 credit.
Total credit: $1.61.
Rolled up the put side to $36 for $0.35 credit.
Total credit: $1.26.