Trade Update: Taking Profits on High IV Trade

The recent high Implied Volatility in the market prompted up to place a trade that takes advantage of such conditions last week. 

If you can recall, I sold the 1800 puts with 14 days to expiration at 3.60. Well, today the IV deflated as the market climbed a little higher after last weeks sell off.

(Here's the link to the original trade)

I was able to buy the puts back at 1.15 for a profit of 2.45, or $245 dollars per contract. This put me at a profit of 68% of the total max profit. Well above my expected goal.

Here's what the current market is showing as of today:

If you look at the top left hand corner of the chart, you will see the current IV rank showing as 41%. On Friday when we placed this trade, the IV rank was around 64%. 

So over the course of just the weekend, with a shift in IV, and the right strategy, we can secure quick profits by taking advantage of situations that happen. Seeing your trade, placing it, and taking profits early are essential for keeping risk low, and profits climbing!

Stay tuned for the more upcoming trades.