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.
XBI Daily Chart
Trade Type: Short Put
Expiry: 16 Dec
IV Rank: 26.9
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.