In today's segment Beef dives into three trades, along with a statistical background of each.
Starting with a look at the materials ETF with the ticker XLB. The 3-month return has seen a downward move of nearly 12%. Beef chose to place a strangle in this trade which is profitable within a +/- 8.1% move.
The next trade is in a highly capitalize underlying CAT. Beef describes how this stock can add international diversification as nearly 60% of its profits comes from overseas. The IV Rank is at 93 and the stock is trading near its lows. Beef places a covered call which reduces basis by $3.50.
Finally Beef takes a look at the Semiconductor ETF with the ticker SMH. Beef present this as a candidate for an iron condor. With a theoretical price move of +/- $10 in the next 38 days. This trade has been profitable 65% of the time with a median P/L of $45.