PG Bearish inclined naked calls - 22 Jan expiryJanuary's Secondary Trade
This trade is slightly riskier and is the opposite of the general market movement ( bullish ).
The reasons why I pegged this as bearish is:
Based on the 9 Nov price movement due to the US elections, where post COVID-19 stocks spiked, PG fell.
Consumer Defensive sector seems to be in a position where traders in the short term don't see much aggressive growth vs other sectors which have taken a beating and are poised for bigger climbs as we advance against the virus with the vaccines
PG also seems to be contained in a range that puts my strike in a favorable position as it is near the upper S/R Line.
I'm slightly worried about the Earning release on the 20 Jan and might close this trade before just to be safe. This trade will be hedged with a bullish VXX trade, paid by the Jan premiums
Sold 7 CALLs @ 1.5, Strike 142
BP block: 17k
Max gain est: $1045