Not much of an action today at the market, which didn't surprise me after the huge rally yesterday.
The volatility (VIX) dropped below 20 and the SKEW naturally increased a bit but still not at an alarming level.
This raises the question whether we will really have a market collapse that the majority of the experts have been talking about for some time.
Perhaps they just want publicity given that bad news always sells more than good news.
But what's bad and what's good on the market really depends on which side the trader plays.
I personally trade both sides of the market so for me a higher volatility but sideways action is best.
Yesterday I closed/adjusted several of my positions but the relative inactivity in the market didn't require me to do much today.
For those, who are new to my daily market comments, I place and document one trade a day with the objective of helping everyone learn how to trade options.
What's my trade for today?
#COIN (#CoinBase). I played the $25 put less than 2 weeks ago and it turned out good so this time I decided to take a bit more risk with a Jan $30 put.
The stats
Trade Type: Short Put
Strike: $30
Expiry: 20 Jan
Delta: 13
IV Rank: 37.9
Premium: $1.53
Cap Req: $742
Annualised Prof at Expiry: 151%
Let me know what you think.
Nice winner!
Closed at $1.16 for an annualised profit of 152%.