Disclaimer:The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
I noticed that Philip Morris (PM) may be entering a slightly bullish phase. IV rank is high (above 75%).
The Trade
I sold a put:
For reference, here is the current price chart of PM:
For the record, I'm OK with either rolling this or do the wheel strategy if things go south for me.
As always, I have logged the trade in my trade log.
Trade Closed
Following an FDA news that hit the company earlier than I expected (about 3 weeks earlier, but FDA calendars are somewhat indicative), the position was jeopardized and I'd rather take a loss below the full premium I could earn than hope for a rebound:
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education