Market comments 20221111

The past two days were impossible to defend for the options traders.

The size of moves were absolutely insane.

Here are some examples of big names:

AMZN: +17%

GOOGL: +10%

AAPL: +11%

NFLX: +14%

SQ: +25.5%

You might think, yeah, these are all tech stocks.

So let's take a look at some more:

LVS: +9%

TGT: +13%

X: +15%

UAL: +8%

CCL: +21%

I think you get the point.

If anyone sold call options earlier this week thinking that the mid-term elections and the CPI data would drive prices down, they are scratching their heads today.

When I see moves like the past two days, I prefer to go into a bit of retreat.

Also, the VIX is down at 22 while it was around 33 two weeks ago, which means that we might see another market correction soon, which will represent great opportunities.

Here are my weekly closed deals:

So what's my trade for today?

#EWZ (#BrazilETF). The IVR is very high and the price dropped a fair bit yesterday. I wanted to see which way it would move before I took my chances. I sold the $26 December put which has an over 80% probability of profit.

The stats

Trade Type: Short Put

Strike: $26

Expiry: 16 Dec

Delta: 18

IV Rank: 72.8

Premium: $0.7

Cap Req: $268

Annualised Prof at Expiry: 272%

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-20221108

Rolled:

https://www.tycoonitos.com/community/market-comments/market-comments-20221109

https://www.tycoonitos.com/community/market-comments/market-comments-20220421

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

Let me know what you think.