Market comments 20221027

META (Facebook) has been killed after the earnings. In fact, it has been destroyed severely this this.

In the beginning of February this year the stock was at $328 and today it has gone below $97.

That's a collapse of over 70%!!!

It makes Bitcoin and its friends look like a safe investment.

Is it time to try to catch the falling knife?

Well, it's a risky venture but sometimes I can't resist the temptation so I actually sold the Nov $80 put against it thinking that surely it won't fall another 17% in 21 days. Well, we'll see.

So what's my trade for today?

#AMZN (#Amazon) earnings with 1 day till expiration. I went for the $90 put, which is over 22% below today's open. That's an enormous move for an over trillion dollar company, but not impossible. If it doesn't work out then I will have plenty of opportunity to roll to either Nov or Dec.

The stats

Trade Type: Short Put

Strike: $90

Expiry: 28 Oct

Delta: 7

IV Rank: 102.1

Premium: $0.48

Cap Req: $900

Annualised Prof at Expiry: 1947%

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