Market comments 20221209

Another really quiet day but that works for me at the moment. It allows me, as an options trader, to take advantage of the time decay.

We basically had 3 days of sideways minimal movement in the overall market and when you add the weekend to it then we just 'survived' 5 days stress free.

I was able to close some of my positions and with the exception of ATVI, which resulted in a $13 loss, they were all nice winner.

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?

#XBI (#BiotechETF). At $80 I am very much fine with this ETF so I took a shot at a short option expiring next week. If the price bounces up a bit then this will be a massive winner. If not then I can always roll it to Jan.

The stats

Trade Type: Short Put

Strike: $80

Expiry: 16 Dec

Delta: 52

IV Rank: 26.9

Premium: $2.18

Cap Req: $1565

Annualised Prof at Expiry: 726%

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-20221202

https://www.tycoonitos.com/community/market-comments/market-comments-20221205

Let me know what you think.