Interesting tape action today in the last hour of the trading day: the SPY rallied and it appeared that it will close near it's open but than pulled back in the last 10 minutes.
Can we draw any conclusion from this?
I don't think so but if we also factor in that the VIX dropped then I have the feeling that we may see the market going up tomorrow. But only a tiny bit. Let's wait and see.
So what's my trade for today?
Before I describe it, I wanted to highlight my move on AA, which is definitely worth a read.
So my trade today is #AMD (#AdvancedMicroDevises). After seeing the stock falling 13% in 4 days I like my chances with a naked put at 18 delta (83% probability). My strike is at $75, which 23% lower than what the price was 4 days ago and only a bit over 2 weeks to go before it expires.
The stats
Trade Type: Short Put
Strike: $75
Expiry: 16 Sep
Delta: 18
IV Rank: 40.7
Premium: $0.83
Cap Req: $751
Annualised Prof at Expiry: 252%
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-20220420
https://www.tycoonitos.com/community/market-comments/market-comments-20220823
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
Fantastic winner!
Closed at $0.44 for an annualised profit of 237%
I probably could have held it till expiration but I am de-risking my portfolio.