The bonds are on the move. Is this a signal of a market crash?
If we take a look at the correlation between TLT and the S&P500 then we can see that they tend to move the opposite direction.
It hasn't really been the case this year as we have seen everything going lower, but I would be cautious.
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?
#AMZN (#Amazon) Jan $80 put. I played this stock multiple times over the past few weeks and always came out on top. With the stock being near it's multi-year low I believe it's relatively safe to assume that it will bounce back.
Trade Type: Short Put
Expiry: 20 Jan
IV Rank: 38.4
Cap Req: $932
Annualised Prof at Expiry: 187%
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.
Let me know what you think.
Closed at $1.05 for an annualised profit of 685%.