The SPY started the week at $396.66 and ended the week at $396.03.
It's crazy to think about how the 500 largest companies worth trillions of dollars, only moved $0.63 in a hole week.
But that's why trading large indexes (SPY, SPX, QQQ, IWM, etc) is the safest.
The sideways move was perfect for those with non-directional plays, such as strangles.
The VIX is relatively low at 23 but it's still elevated compared to the long-term historical average.
What do I expect from next week?
I am expecting the market to remain relatively stable but lower than where we closed at.
The key risk I see is that the volatility may rise and that can hurt options sellers.
My week was another success.
So what's my trade for today?
#AMZN (#Amazon). The stock was trading over $103 earlier this week and went below $94 when I placed my trade. I believe it will bounce back so I sold $80 put, which is way below the current price so I consider it very safe.
AMZN Daily Chart
Trade Type: Short Put
Expiry: 16 Dec
IV Rank: 43.2
Cap Req: $800
Annualised Prof at Expiry: 124%
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.