Once again the CPI numbers are worse than what the market anticipated but still the market almost closed in the green.
I find the situation scary and I would not be surprised if we experienced a bigger selloff sometime in the near future.
My trade for today was an #ABNB (#Airbnb) calendar spread with the anticipation that the price will drop a bit after the earnings. As we can see it on the daily chart, at the end of last week the price dropped suddenly but then it bounced back this week and closed at just under $121 so I was hoping that after the earnings the price will go back down to about $110. Unfortunately, by the time I am writing this post the earnings results are already known and the price jumped to just under $133.
Fortunately my max loss is limited to the amount of debit I have in the trade and because my long position expires in April, I still have 2 more rolls to reduce my debit and potentially even get out on top if the price drops.
Trade Type: Put Calendar: short Feb $110p; Apr $110p
Expiry: 17 Feb
IV Rank: 40.6
Cap Req: $398
Annualised Prof at Expiration: ?
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