JWN Bearish inclined naked calls 31 July expiry
Updated
Whats The Plan/Trade/Thought
- JWN (Nordstrom) is a luxury departmental store chain. With the concerns of the recession and the cooling signs of the job market, layoffs in tech and the overall retail leadership cautiousness during the earnings. I think this is the right direction especially since it is following the larger market direction
- US retail sales also post the first drop in 5 months as auto purchases plunge and inflation bites
Risk Mitigation - I have two S&R lines at 26 and 29.46 if it breaches 29.46 it is an immediate close
Imagine Yourself Taking The Other Side - I would not take a bull position on this. Especially since retail is one of the industries that will be hit first by inflation
Look For New Information - The slight decline in May, restrained by a plunge in vehicle purchases and other big-ticket items, suggesting moderating demand for goods amid decades-high inflation.
I Feel - I believe I am aligned with the larger market sentiment. While there might be a technical recovery. I think the drops are deeper than the climbs. Also the media keeps hammering into readers the “recession” word
Trade Specs - Sold 270 Calls @ 0.34
- Strike 31
- 26% to Strike
- BP Used: 66460
- Max Gain: 9004.5
Trade closed: target reached
Yay!
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