The market is eagerly waiting to find out what the Fed is going to do/say tomorrow.
The expectation is that they will raise interest rates by 0.75 basis points and then it will start slowing down.
I have spoken to a multiple banks in recent days and they all agree on one point: the interest rates are going to start coming down next week or at least stay near the level where they will be after tomorrows rate hike.
Impact on the market?
Nobody knows. For this reason it's best to pay attention to both sides.
So what's my trade for today?
#AMD earnings. I sold the Dec $45/75 strangle for $1.61 and the earnings call is taking place as I am writing this post. After the major win in UBER today it looks like I am going to score another one tomorrow.
The stats
Trade Type: Short Strangle
Strike: $45 / 75
Expiry: 16 Dec
Delta: -5
IV Rank: 68.9
Premium: $1.61
Cap Req: $560
Annualised Prof at Expiry: 233%
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-20221031
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220613
Let me know what you think.
Perfect winner!
Closed at $1.21 for an annualised profit of 2607%.