Any kind of ETF naked PUTs are my favorite at high IVR. My choice for today: ARK Fintech Innovation ETF
Reasons: - high reward for Jan21 monthly expiry (mangeable with rolling) -> collecting credit - RSI is already oversold - breakeven point is far - PUT strike at 0.618 fib
Max profit: $210 Probability of Profit: 89% Profit Target relative to my Buying Power: 20%
Req. Buy Power: $1035 (max loss without management before expiry, no way to let this happen!) Tasty IVR: 73 (very high) Expiry: 38 days
SETUP: NAKED PUT for ARKF, because IVR is high, for 0.7cr * Sell 3 ARKF JAN21'35 PUT
Management: ROLLING if daily candle is closing below of BE.
Take profit strategy: 70% of max.profit in this case with auto buy order at 0.2db
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW, and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview!
Trade closed: target reached
⋅
Trade closed at 70% of max proft. Bought back each PUT option for 0.25db. My profit: $135, and that is 13% relative to my buying power in 16days. I'm satisfied with this trade.