Finally a bit of cooling off today. I have been waiting for this for 4 weeks. Hopefully it won't stop here.
But the bad news is that the VIX barely moved up so today's drop may not continue.
So what's my trade for today?
#MU (#MicronTechnology). It's a relatively stable paper so with the downwards move today I thought I try my luck with a naked put. It is possible that the price will drop further but the $55 strike is at 85% probability of profit so I am quite comfortable with it. The earnings will take place after the expiration, which means even lower risk.
The stats
Trade Type: Short Put
Strike: $55
Expiry: 16 Sep
Delta: 18
IV Rank: 30.6
Premium: $0.68
Cap Req: $564
Annualised Prof at Expiry: 147%
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-20220816
https://www.tycoonitos.com/community/market-comments/market-comments-20220622
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220419
Perfect trade!
Closed at $0.31 for an annualised profit of 2395%.
It doesn't get any better :)