1.
"Smart traders look to sell premium" when the VIX is over 40, thus taking advantage of the elevated volatility and hence elevated premiums.
$Cboe Volatility Index(VIX)$ over 40 isn't a sustainable event, and eventually fear subsides and the VIX calms and comes back down.
2.
$Taiwan Semiconductor Manufacturing(TSM)$ announces earnings on Thursday, April 17 before market open. Been seeing some differences in expected move from various data providers, but essentially the move is in the 5-7% range.
Optionselling Trade :
Am looking to write a put ladder, selling-to-open the April 25 expiration and targeting the following areas
- recent bottom at 134
- unfilled gap at 103
- and maybe the 115 area
Points To Consider :
- The goal of these trades is premium capture, but those lower strikes do present an attractive R/R to go long (get assigned) if breached
- Market environment and gamma exposure on TSM is leaning towards the downside
- TSM did report strong YoY for Q1 and MoM revenue growth, but will that be enough to warrant a stock price pump considering that they may skip out on forward guidance with all these unknowns in the current tariff/trade war environment
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