Forum Posts

Peter Szabo
Dec 07, 2022
In Market Comments
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. The stats Trade Type: Short Put Strike: $80 Expiry: 20 Jan Delta: 24 IV Rank: 38.4 Premium: $2.1 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. Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220802 Let me know what you think.
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Peter Szabo
Dec 06, 2022
In Market Comments
We had an insane move a week ago that I could not understand and now the market is back where it was before the huge rally. In fact, it's a bit lower. I am completely fine with this move and I believe we will see more sideways action over the coming weeks. 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? #AMD (#AdvancedMicroDevices). The stock reached $79.23 a week ago and it's now trading closer to $70. That's about a 12% drop so I am more than comfortable selling a put option against it even though the volatility (IVR) is fairly low. The stats Trade Type: Short Put Strike: $60 Expiry: 20 Jan Delta: 20 IV Rank: 27.6 Premium: $1.67 Cap Req: $600 Annualised Prof at Expiry: 226% 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: None. Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know your thoughs.
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Peter Szabo
Dec 05, 2022
In Market Comments
I was quite happy to see the market being down today given the huge rally on Thursday last week. This move just helped my portfolio to be a bit more balanced. What options traders do need to be careful of is the possibility of a volatility expansion. Option prices are higher when the volatility is high because the perceived risk of larger swings is higher. So when we have positions in low volatility environment then the risk of a volatility expansion is high. 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? #SQ (#Block) January $50 put. I just closed my December strangle for a nice profit, which opened the doors for another trade. The stock dropped a fair bit today so selling a put option sounded like a logical move. The stats Trade Type: Short Put Strike: $50 Expiry: 20 Jan Delta: 16 IV Rank: 29.6 Premium: $1.54 Cap Req: $502 Annualised Prof at Expiry: 243% 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-20221103 https://www.tycoonitos.com/community/market-comments/market-comments-20221128 Let me know what you think.
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Peter Szabo
Dec 02, 2022
In Market Comments
With the volatility going further down it is certainly more challenging to find great option trades. I was able to close 6 of my deals with decent profits so my week was a success but at some stage I expect the volatility to jump again, which could stress my remaining positions. 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? #MU (#MicronTechnology). The stock dropped a bit today and it's trading near it's recent lows so I thought I would try my luck with $51 put expiring in 2 weeks. I did not want to go out to Jan to avoid earnings. If we see a bounce up next week then this will most likely be a quick trade. If it doesn't work out then I can simply roll it to Jan. The stats Trade Type: Short Put Strike: $51 Expiry: 16 Dec Delta: 24 IV Rank: 25.4 Premium: $0.61 Cap Req: $746 Annualised Prof at Expiry: 213% Let me know what you think.
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Peter Szabo
Dec 01, 2022
In Market Comments
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.
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Peter Szabo
Nov 30, 2022
In Market Comments
What a huge rally today! I was not expecting this. What caused it? The Fed announced a slower pace in their interest rate hikes. In my opinion the market significantly overreacted. A smaller interest rate hike is still a hike, which increases the pressure on most individual's and businesses' budgets. It will make more people lose their jobs and more people defaulting on their loan payments so I do not get how the market spiked up 3.3% on a single day. 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? #KMX (#CarMax). Normally I like to sell put options when a stock drops at least 3% but in this instance KMX followed the market trend and rallied today. Given that most stocks rallied and the volatilities across the board are very low I did not see many opportunities apart from KMX. I opted in for a short option hoping to avoid the earnings, which will take place shortly after the Dec expiration. Also, the strike price I selected is fairly solid so even if the price drops after today's rally, I still believe that this trade will be fine. If the price goes further up then I might sell a call option too. The stats Trade Type: Short Put Strike: $62.5 Expiry: 16 Dec Delta: 15 IV Rank: 57.3 Premium: $0.5 Cap Req: $709 Annualised Prof at Expiry: 161% 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-20221129 https://www.tycoonitos.com/community/market-comments/market-comments-20221117 https://www.tycoonitos.com/community/market-comments/market-comments-20221114 https://www.tycoonitos.com/community/market-comments/market-comments-20221122 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20221104 https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know what you think.
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Peter Szabo
Nov 29, 2022
In Market Comments
How do we use options to generate regular income for us? By selling a put and a call option against the same stock and keep 'rolling' our position we can generate a relatively steady stream of income. What does rolling mean? Each option has an expiration date and using the above strategy we do not want our options to expire. Instead, as we get to about 21 days to expiration we close our existing position and sell another one expiring a month later. Also, it's expected that the stock will move against one of our positions in which case we roll the other position (untested side) a bit closer to the new price. This is what we call: 'managing winners'. Below is a chart of my SPY position that I have been rolling since mid-May. Blue candlestick >> price movement Continuous lines >> my option positions Dotted line >> Premium collected As we can see, the premium I collected climbed rapidly in the first few months due to the high volatility in the market. In recent months the the volatility has been fluctuating greatly and the market tested my positions on both sides (wild movements up/down). As a result in recent months my profit has been stagnating but I should be able to increase it bit by bit. Note: the approximate capital that such option strategy requires for SPY is between $7-8 thousands, however it might be lower depending on your broker platform. 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). The stock fell a bit today and am hoping for a quick bounce. I selected a strike price at 18 delta which gives me approximately 82% probability of profit. The stats Trade Type: Short Put Strike: $80 Expiry: 20 Jan Delta: 18 IV Rank: 39.1 Premium: $1.77 Cap Req: $802 Annualised Prof at Expiry: 155% 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-20221111 Let me know what you think.
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Peter Szabo
Nov 28, 2022
In Market Comments
Another crypto firm, BlockFi, filed for bankruptcy. The great Warren Buffet was right once again. Most people wrote him off several times over the past 5 years but in the end somehow he always comes out on top. The final nail in the coffin of his critics would be a major market crash, which would give him tremendous opportunities to deploy his billions. On a personal note, it's been a busy start for the day. I rolled many of my positions to January and was able to close one of my positions. What's my trade for 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. My today's trade is a standard strangle against #ATVI (#ActivissionBlizzard). The IVR (volatility) is fairly elevated and the movement of the stock is relatively stable. I am hoping that the IVR will drop soon enabling me to cash in on my position. The stats Trade Type: Short Strangle Strike: $67.5 / 82.5 Expiry: 20 Jan Delta: 0 IV Rank: 56.8 Premium: $1.81 Cap Req: $774 Annualised Prof at Expiry: 161% 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-20221110 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220613 https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20220802 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know what you think.
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Peter Szabo
Nov 23, 2022
In Market Comments
The market seems to believe that the inflation problem is slowly going away, which drives the share prices up. But that's just one side of the equation. The fundamentals are in pretty bad state and I would not be surprised if what we are seeing now is the calm before the storm. Massive layoffs took place everywhere, the inflation consumed the savings of people, property values dropped significantly, etc. I would not be long in the overall market. In fact, I am considering changing my index positions (SPY, QQQ, IWM) from strangles to iron condors. What's the difference? The iron condor limits the risk on both sides of our strangles. It is rare that I would trade iron condors for two reasons: it's a lot more expensive than the strangles and it's difficult to adjust. However, because the VIX has dropped from mid 30's to nearly 20, we can buy put options at a much cheaper rate then a month ago. I will look into these adjustments in the coming days. What's my trade today? #NKE (#Nike). The volatility jumped up in the past couple of days so it's time to sell options against it. I chose the Dec strangle as I am hoping to close it before earnings. If it goes against me then I can easily roll to Jan. The stats Trade Type: Short Strangle Strike: $95 / 118 Expiry: 16 Dec Delta: 1 IV Rank: 65.1 Premium: $0.90 Cap Req: $1068 Annualised Prof at Expiry: 134% 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-20221121 https://www.tycoonitos.com/community/market-comments/market-comments-20221118 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220218 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know what you think.
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Peter Szabo
Nov 22, 2022
In Market Comments
With the VIX (volatility) so low, it is starting to get a bit more challenging to find great trades, however sometimes the trades that do not look great can actually turn out fine. For example, we may have have a stock that doesn't have the tendency of fluctuating much, therefore the volatility is low and the premium is not eye-popping. In these instances I like to do: a. sell a strangle (sell put and call) against it. We often find that the annualised return is over 200% if the price remain between our two strikes and we hold the position to expiration, which is a phenomenal return. So seemingly boring trades can also produce great results. The added benefit is that they require less work as generally we don't have to touch it. b. wait for the price to move a bit bigger (preferably over 3% on a given day) and sell a naked option depending on the direction of the move. E.g. if the price jumps up then I like to sell a call option against it as after the initial hype that caused the sudden spike the price tends to come back down a bit. What's my trade for today? #XBI (#BiotechETF). The price has fallen to the bottom of its recent range so selling a put option against it seemed like a good idea. The $75 level is fairly strong so I am happy to take a bit more risk with it. The stats Trade Type: Short Put Strike: $75 Expiry: 16 Dec Delta: 24 IV Rank: 12.9 Premium: $1.23 Cap Req: $1093 Annualised Prof at Expiry: 171% 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: None. Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know what you think.
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Peter Szabo
Nov 21, 2022
In Market Comments
The market barely moved again and the VIX (volatility) fell further reaching nearly 22. Are the traders in holiday mode (Thanksgiving) or just waiting for someone to make a bigger move in either direction? Nobody knows, but what we do know is that the VIX at this level is on the bottom of its range of the past two years. What does that mean? First of all, the VIX shows the market fear. Lower fear levels mean that the market is not expected to move wildly and it is more of a bullish indicator. However, looking at the chart below, we can see that the fear level tends to spike up regularly, which is a very important factor for options traders. If we use well over 50% of our capital selling options and the VIX jumps up then we can quickly find ourselves in a tough situation. One way to mitigate this risk is to sell options against stocks with high volatility. What's my trade for today? #AAL (#AmericanAirlines) doesn't meet the high volatility criteria but I am very comfortable selling $14 put against it every time it goes below $14. It's a cheap and fairly stable stock so even if it moves against me, it doesn't take very long to recover. Also, it barely requires any capital so if the VIX jumps up, I will still have plenty of buffer at my portfolio level. The stats Trade Type: Short Put Strike: $14 Expiry: 16 Dec Delta: 50 IV Rank: 13.3 Premium: $0.73 Cap Req: $279 Annualised Prof at Expiry: 382% 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-20221115 Rolled: None Let me know what you think.
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Peter Szabo
Nov 18, 2022
In Market Comments
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. The stats Trade Type: Short Put Strike: $80 Expiry: 16 Dec Delta: 11 IV Rank: 43.2 Premium: $0.76 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. Closed: https://www.tycoonitos.com/community/market-comments/market-comments-20221116 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220811 https://www.tycoonitos.com/community/market-comments/market-comments-20220504 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 https://www.tycoonitos.com/community/market-comments/market-comments-20221104 https://www.tycoonitos.com/community/market-comments/market-comments-20221114 Let me know what you think.
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Peter Szabo
Nov 17, 2022
In Market Comments
How do I determine when and how to roll our option positions? Time It's normally best to place a trade with around 55 days to expiration but sometimes I prefer shorter expirations. For example, if there is an upcoming earnings then I prefer shorter expiration due to the collapse of volatility. Another example would be if a stock has a big move in one direction then I like to bet against further move in the same direction with a short expiration. Generally speaking, rolling to next month at around 21 days till expiration gives us better control over our portfolio. Strike position Sometimes the stock moves too much and stresses our position. In this instance I like to assess if it's feasible for me to keep my position. For example, earlier this year there were multiple stocks which fell significantly (e.g. PYPL, META, NFLX, etc.) and I had no choice but to accept a loss. If the position can still be saved (in most cases), then I check if I can adjust with the same expiration but often I have to roll to the next month. Sometimes it's worth sacrificing some of the credit we received to move our strike further away from the price. A perfect example for this would be my current SQ position. So what's my trade for today? #M (#Macy's). The earnings was positive and the stock moved a fair bit. Although the IVR is very low, I thought I would try my luck with a strangle given that the credit received was very high compared to the capital it used. The stats Trade Type: Short Strangle Strike: $19 / 25 Expiry: 16 Dec Delta: -8 IV Rank: 5 Premium: $0.8 Cap Req: $223 Annualised Prof at Expiry: 452.% 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-20221109 Let me know what you think.
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Peter Szabo
Nov 16, 2022
In Market Comments
This week's sideways move has been great for those who trade both sides of the market with options. However, in these sorts of environment it's especially important to pay attention to the volatility. Why? Because if one sells options when the volatility is low then a sudden increase in volatility can really hurt them. Even the directionally good position can cause headaches. So what's my trade for today? #TGT (#Target). The earnings took place this morning and the stock fell over 16% only to recover to a 13% drop. I tried my luck with an iron condor expiring in 2 days. If it doesn't work out then I can roll it to Dec. Also worth noting that the long sides of my iron condor are only there to reduce the capital this trade requires. The stats Trade Type: Short Iron Condor Strike: Short 150/165 Long 140/177.5 Expiry: 18 Nov Delta: 0.47 IV Rank: 45.9 Premium: $1.04 Cap Req: $1142 Annualised Prof at Expiry: 1662% 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-20221018 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220802 Let me know what you think.
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Peter Szabo
Nov 15, 2022
In Market Comments
The rally continued today with the SPY increasing by 7.5% in 4 trading days. When will the rally stop? I would say: this week. But the market is random so nobody knows. I was, once again, forced to make a lot or adjustments to my positions by managing my winners. What does that mean? A strangle means that we sold both put and call options against the same stock and we hope that the stock price remains between our strike prices. However, as the price moves, one side would suffer while the other side would gain. So managing our winners means to roll our winning side up/down depending on which side is winning. If the stock price moves higher then the put side wins so we move the put strike higher and collect additional premium. What's my trade for today? As the volatility contracted a fair bit over the past few weeks it is getting increasingly challenging to find great trades, however something is always tradeable. Today I opted in for #RCL (#RoyalCaribbean) strangle. Although the IVR is much lower than a few weeks ago, it is still high compared to most stocks so a wide strangle seemed like a good deal. The stats Trade Type: Short Strangle Strike: $45 / 75 Expiry: 16 Dec Delta: -7 IV Rank: 50.7 Premium: $1.32 Cap Req: $608 Annualised Prof at Expiry: 256% Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220330 https://www.tycoonitos.com/community/market-comments/market-comments-20221103 https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20221109 https://www.tycoonitos.com/community/market-comments/market-comments-20221110 Let me know what you think.
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Peter Szabo
Nov 14, 2022
In Market Comments
When I saw the market being up earlier today I was thinking that something was not right but fortunately (for me) my assumption was correct and the market did close down for the day. Nevertheless, as the market moves are often random, it's best to play both sides and be prepared for moves that do not make sense. That's exactly what I did with many of my rolls today. So what's my trade for the day? #MOS (#Mosaic) The stock has been moving sideways for a few months so hopefully the trend will continue for a few more weeks as I sold a wide strangle. The stats Trade Type: Short Strangle Strike: $45 / 65 Expiry: 16 Dec Delta: 4 IV Rank: 37.6 Premium: $1.13 Cap Req: $532 Annualised Prof at Expiry: 242% 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-20221026 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220613 https://www.tycoonitos.com/community/market-comments/market-comments-20221110 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 Let me know what you think.
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Peter Szabo
Nov 11, 2022
In Market Comments
The past two days were impossible to defend for the options traders. The size of moves were absolutely insane. Here are some examples of big names: AMZN: +17% GOOGL: +10% AAPL: +11% NFLX: +14% SQ: +25.5% You might think, yeah, these are all tech stocks. So let's take a look at some more: LVS: +9% TGT: +13% X: +15% UAL: +8% CCL: +21% I think you get the point. If anyone sold call options earlier this week thinking that the mid-term elections and the CPI data would drive prices down, they are scratching their heads today. When I see moves like the past two days, I prefer to go into a bit of retreat. Also, the VIX is down at 22 while it was around 33 two weeks ago, which means that we might see another market correction soon, which will represent great opportunities. Here are my weekly closed deals: So what's my trade for today? #EWZ (#BrazilETF). The IVR is very high and the price dropped a fair bit yesterday. I wanted to see which way it would move before I took my chances. I sold the $26 December put which has an over 80% probability of profit. The stats Trade Type: Short Put Strike: $26 Expiry: 16 Dec Delta: 18 IV Rank: 72.8 Premium: $0.7 Cap Req: $268 Annualised Prof at Expiry: 272% 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-20221108 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20221109 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 Let me know what you think.
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Peter Szabo
Nov 10, 2022
In Market Comments
The key inflation figures came in slightly below the expected and the market did an insane rally. Is this the end of the bear market? I highly doubt it. The inflation is still very high and the interest rates are also relatively high. Companies are still laying off their employees and there are still major geo-political issues around the world. To top it up, the price of oil remains high, which continues adding further pressure on household budgets. So in short: I would caution everybody from going all in with bullish trades. So what's my trade for today? #AMD (#AdvancedMicroDevices). It's another relatively safe trade to protect my portfolio against the huge swings I am expecting to see in the short-term. I selected very wide strikes so I am very comfortable with this trade. The stats Trade Type: Short Strangle Strike: $55 / 85 Expiry: 16 Dec Delta: 1.26 IV Rank: 28.7 Premium: $1.2 Cap Req: $684 Annualised Prof at Expiry: 178% 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-20221107 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 Let me know your thoughts.
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Peter Szabo
Nov 09, 2022
In Market Comments
Is the market sensing a bad CPI report, which will be released tomorrow? That's a possibility. Or is it the collapse of FTX and many other crypto exchanges? Who knows, but the near-term future is not very bright for the bulls. So what's my trade for today? #GM (#GeneralMotors). I decided to go with a relatively stable company. It's not the best trade as the IVR is very low but the potential return is very attractive. The stats Trade Type: Short Strangle Strike: $32 / 43 Expiry: 16 Dec Delta: -7 IV Rank: 29 Premium: $0.91 Cap Req: $382 Annualised Prof at Expiry: 235% 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-20221011 Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421 Let me know what you think.
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Peter Szabo
Nov 08, 2022
In Market Comments
Big swings in the market again today leading up to the mid-term elections. The VIX is up a bit but I am not concerned in the short term. The market could move either way tomorrow, which is why one of the safest options trading strategies is to trade strangles on the major indexes (QQQ, SPY, IWM). They do, however, require normally between $6-8k capital. So what's my trade for today? #DIS (#Disney). Another earnings play with a wide strangle. The only thing I look when I trade earnings is the stability and propensity for large swings. If a stock has large moves during earnings then it's best to stay out of it. I consider Disney fairly stable. The stats Trade Type: Short Strangle Strike: $85 / 115 Expiry: 18 Nov Delta: 0 IV Rank: 57.9 Premium: $0.93 Cap Req: $956 Annualised Prof at Expiry: 355% Let me know what you think.
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Peter Szabo

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