Update 10/6/2021: The Fisher Transform indicator whipsawed on PAAS, giving a sell signal the day after a buy signal that triggered entry. I’ve exited the position for a $1.16 credit per contract/share, a loss of $0.35 from the entry price. The share price declined by $0.02, to $22.39.
The Implied Volatility Rate declined by 1.3 points to 18.9%.
Shares declined by 0.1% over one day for a -33% annual rate. The options position produced a 17.9% loss for a -6,518% annual rate.
I have entered a put position on PAAS, using options that trade for the last time 108 days hence, on January 21, 2022. The premium is a $1.96 debit per contract share and the stock at the time of entry was priced at $22.41.
The Implied Volatility Ratio stands at 20.2%.
The maximum risk is $196 and the maximum reward is unlimited. Time decay at the time of purchase was $-0.01 per day.
I entered the position based on a short signal on the Fisher Transform indicator. I anticipate exiting upon receipt of a long signal on the Fisher, or by November 19, whichever comes first.
By Tim Bovee, Portland, Oregon, October 5, 2021
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
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