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$2.5 Million in Premium on One Semiconductor
And this trader just collected over $2.5 million by selling 30,000 contracts on the semiconductor stock.
Now, selling calls sounds like a bearish position. But this is most likely against a long stock position to create yield in HIMX.
And honestly, I don’t hate it. But I’m not long stock in HIMX right now, so selling covered calls isn’t of interest to me.
Selling puts, however, is.
The January 21, 2022 $12 puts are going for about 50 cents right now. That’s $50 per contract you sell straight in your pocket. And if HIMX, which opened at $12.62 this morning, stays above $12 by expiration, you’d get to keep all of that premium.
Mounting Flight Cancelations = Major Buying Opportunity
- AMC Entertainment Holdings Inc. (NYSE:AMC)
AMC hit my radar last week after my Profit Revolution members had the chance to score 400% in three days off of a simple trade idea. From there, I was calling for a major drop in the meme stock.
And that prediction stands. AMC opened at $28.35 this morning, but I think the YOLO meme trade might be dead, and this stock could be heading for $20 per share. I would be looking for cheap puts to play the downside.
- Delta Air Lines Inc. (NYSE:DAL)
As the Omicron variant rapidly makes its way through the US population, workers in almost every industry are becoming scarce as they’re forced to stay home from work. And that includes the airlines.
DAL has had to cancel hundreds of flights over the past few days, and the stock is down on the news, opening more than 2.5% lower than where it was at Thursday’s close.
But I’m not overly worried about this downturn in the airlines. I don’t think it’s a permanent weight – I think it’s a short-lived buying opportunity, and I may look to buy calls in names like DAL today.
- Nokia Oyj (NYSE:NOK)
NOK seems to be breaking out. It just broke the high it established in August, and I think it could head to $7 early in the new year.
Looking for some decent calculated risk? The January 7, 2022 $6.50 calls are only 10 cents!
Low Trading Volume Doesn’t Mean Vol Won’t Pop
We’re open for the full week – but trading volume is likely to be light as we head into the end of the year.
That said, the VIX is still in contango. And I’m leaning short the VIX, meaning I expect volatility to drop from here.
My VIX light, however, is still YELLOW. And that means, despite the contango, we are still set up for potentially wild moves.
The potential for a volatility pop – and a market drop – is still in the cards. That’s why we have to tread carefully as 2021 comes to an end.
Make sure you tune into my free Profit Revolution trading session tomorrow at 1:30 PM ET for more!
Founder, Profit Takeover
December 27 2021