XRT Bullish inclined Naked Puts 17 Dec Expiry (Dec Track 2)
Updated
Whats The Plan/Trade/Thought
- Feels like a safe position given that the market is seeming very bullish at the moment
- XRT has also broken a key resistance line and that transforms it into a solid support line
- XRT are retail discretionary companies and right now there seems to be alot of optimism. Consumers seem to be find paying for the current rising prices of products. I think will continue with the festive period
- Feds are probably not going to increase interest rates in Dec so we can expect that to not be a concern
I Feel - Solid and Confident
Imagine Yourself Taking The Other Side - As a fact the inflation rate is high and it has already impacted wages and prices.
- Prices of durable goods are high vs last year
- Supply chain issues that are resulting in retailers unable to cope with demand is still not solved and this will have an impact on business that do not have ample reserves to sell
Imagine Yourself As A Neutral Observer - While inflation is a concern the market is showing a lot of bullishness
- This feels very straight forward
Look For New Information - Nothing new
How Do I Feel Now - I'm confident to pull the trigger
Trade Specs - Sold 0.65, 85 Put Contracts @ Strike 89
- % to Strike 12%
- ATR % is Around 21%
- BP used 75k
- Max Gain: est $5525
Trade closed manually
Closed at a loss of -10K. Happy I got out when I did, always good to look long term. Small loses are easier to make back and closing bring you certainty and a peace of mind. Large loses due to hope are soul crushing and a deeper hole to climb out of
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