The Nasdaq (QQQ) was, at its worse, down 35.6% -- it is down 26.1% now. The Dow Jones (DIA) has made back half of its loss -- down now only 9% from its peak made on January 4, 2022. The 20-year bond ETF (TLT) has also decreased in price, which is to be expected given that bond prices and yields are inversely related.
Takeaway. Nasdaq (QQQ) is and Russell 2000 (IWM) are still down significantly from their peaks.
Below we have 3 neutral tasty-type trades, and 3 bullish trades in SPY, IWM, and QQQ.
SPY @ $403.92 IVR: 24%
Max profit of $73 possible Benefits from theta decay of $0.76 per day Breakevens are 7% to the downside, and 7% to the upside Requires capital of $127
Neutral
Iron Condor
Buy 1 SPY 376.0 Put in Apr-21 (59 DTE) Sell -1 SPY 378.0 Put in Apr-21 (59 DTE) Sell -1 SPY 430.0 Call in Apr-21 (59 DTE) Buy 1 SPY 432.0 Call in Apr-21 (59 DTE)
Est. Buying Power Required: $127
Credit/Debit: $0.73 credit
Max Profit: $73.0
Max Loss: $126
Upside Breakeven: 430.735
Downside Breakeven: 377.265
Max Profit Zone: $Between 378.0 and 430.0
Delta: -1, Theta: 1, Vega: -5
IWM @ $190.83 IVR: 20%
Max profit is $305 Breakevens are 11% to the downside, and 11% to the upside Requires capital of $1,978
Neutral
Short Strangle
Sell -1 IWM 172.0 Put in Apr-21 (59 DTE) Sell -1 IWM 208.0 Call in Apr-21 (59 DTE)
Est. Buying Power Required: $1978
Credit/Debit: $3.05 credit
Max Profit: $305.0
Max Loss: $Upside unlimited.
Upside Breakeven: 211.05
Downside Breakeven: 168.95
Max Profit Zone: $Between 172.0 and 208.0
Delta: 0, Theta: 7, Vega: -37
QQQ @ $298.49 IVR: 25%
Max profit is $536 Breakevens are 12% to the downside, and 12% to the upside Requires capital of $2,809
Neutral
Short Strangle
Sell -1 QQQ 267.0 Put in Apr-21 (59 DTE) Sell -1 QQQ 328.0 Call in Apr-21 (59 DTE)
Est. Buying Power Required: $2809
Credit/Debit: $5.36 credit
Max Profit: $536.0
Max Loss: $Upside unlimited.
Upside Breakeven: 333.365
Downside Breakeven: 261.635
Max Profit Zone: $Between 267.0 and 328.0
Delta: 1, Theta: 13, Vega: -59
IWM @ $190.85 IVR: 20%
Benefits $-1.04 for each point rise in volatility Requires capital of $2,246
Bullish
Long Call Diagonal Spread (e.g., The Poor Man's Covered Call)
Sell -1 IWM 200.0 Call in Apr-21 (59 DTE) Buy 1 IWM 169.0 Call in May-19 (87 DTE)
Est. Buying Power Required: $2246
Credit/Debit: $22.45 debit
Max Profit: $854 estimated.
Max Loss: $2245
Upside Breakeven: N/A
Downside Breakeven: N/A
Max Profit Zone: $Pin 200.0 at the front month expiration
Delta: 48, Theta: 0, Vega: -1
QQQ @ $298.49 IVR: 25%
Max profit of $1,245 possible if price at 285.0 at expiration No risk to the upside with a profit of $445 possible Breakeven is 9% below the price Requires capital of $4,865
Neutral to Bullish
Short Put Ratio Spread
Buy 1 QQQ 293.0 Put in Apr-21 (59 DTE) Sell -2 QQQ 285.0 Put in Apr-21 (59 DTE)
Est. Buying Power Required: $4865
Credit/Debit: $4.45 credit
Max Profit: $1245.0
Max Loss: $27254
Upside Breakeven: No upside risk
Downside Breakeven: 272.545
Max Profit Zone: $Pin 285.0
Delta: 22, Theta: 9, Vega: -39
SPY @ $403.92 IVR: 24%
Max profit $202 Breakeven 15.1% below current price No risk to the upside Requires capital of $3,598
Bullish to Neutral
Jade Lizard
Buy 1 SPY 428.0 Call in Apr-21 (59 DTE) Sell -1 SPY 426.0 Call in Apr-21 (59 DTE) Sell -1 SPY 345.0 Put in Apr-21 (59 DTE)
Est. Buying Power Required: $3598
Credit/Debit: $2.02 credit
Max Profit: $201.0
Max Loss: $34298
Upside Breakeven: No upside risk
Downside Breakeven: 342.985
Max Profit Zone: $Between 345.0 and 426.0
Delta: 5, Theta: 6, Vega: -25
Earnings Stocks
Today, before the open (Feb 21): Walmart (WMT), Home Depot (HD) Today, after the close (Feb 21): Coinbase (COIN) Tomorrow, before the open (Feb 22): Baidu (BIDU) Tomorrow, after the close (Feb 22): Nvidia (NVDA) Thursday, before the open (Feb 23): Alibaba (BABA), Moderna (MRNA) Thursday, after the close (Feb 23): Block (SQ), Carvana (CVNA)
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