To The Moon

Yes, the next few weeks will be perfect for the sell put.

Overall the economy is fine. July CPI came in lower than expected and inflation fell steadily, while nonfarm output beat expectations and employment and unemployment both returned to pre-pandemic levels.

But markets are always suspicious. The release of the data will cause a certain pullback impact on the stock price, the next is the expected market, but the overall or continue to rise.

So the easiest way to sell is to sell put. Steady weekly collection. I looked below for companies with good fundamentals and conservative strike prices (except Starbucks).

You can also sell at-the-money Put if you want, and you can earn more.

​​Conclusions suitable for the sell put can also be drawn from the details.

Last week, we observed the option movement and found that many straddles that moved to September did not continue to choose the at-the-money strike price and chose the more in-the-money strike price.

Take Tesla's big straddle order:

• ​$TSLA 20220916 780.0 CALL$
• ​$TSLA 20220916 780.0 PUT$

To make money on this order, Tesla needs to increase to more than$940 = $780+$140(call price)+$20(PUT price), which is a fluctuation of more than 4%. With Tesla up 4% in a month, bullish calls are conservative and inconsistent with Tesla's typically fierce volatility.

When volatility is higher than the market expects, shorting volatility is the best strategy.

The FOMC meets on Wednesday night. I don't think it's a big deal. Powell is expected to come in as easily as he did last time. It's a good opportunity to trade whether the market is up or down.