Market comments 20220305

What occurred to me is that the S&P 500 is only down about 10.5% since it's all time high in the beginning of this year, however most of the stocks that I am closely monitoring are down significantly more.

Here is a small list of stocks that dropped significantly since the beginning of this year:

Ticker BOY Current Change

FB $341.00 $200.00 -41%

PYPL $196.00 $100.00 -49%

GM $ 61.67 $42.40 -31%

UAL $ 46.40 $36.71 -21%

CCL $ 21.74 $17.23 -21%

FXI $ 36.60 $32.97 -10%

XBI $115.56 $83.94 -27%

NFLX $609.99 $361.73 -41%

F $ 21.88 $16.85 -23%

Here are some of the stocks that did not follow the market trend:

Ticker BOY Current Change

K $ 64.70 $64.95 0%

WMT $144.79 $142.83 -1%

X $ 24.39 $31.42 29%

USO $ 55.16 $79.46 44%

STLD $ 63.21 $77.38 22%

SLV $ 21.25 $23.64 11%

It's obvious that the war in Ukraine caused the oil and steel prices to skyrocket but it's also worth noting that in times of financial trouble companies that provide essentials, like Kellogs, will likely to hold their value a lot more than companies who provide non-essential products or services. At the end of the day when a household is in financial distress then they still need to eat (Kellogs) but do not need non-essential subscriptions (Netflix).

So what's my today's pick?

#UAL ( #UnitedAirlines ). It dropped from it's recent high of $50.94 in mid February down to $36.71 today. That's nearly 28% drop of which the big chunk of it was the result of the drop in the last two days.

The same can be said about the other airlines too but at the moment I already have AAL (American Airlines) so I thought it would make sense to split the risk.

The stats

Trade Type: Short Put

Strike: $30

Expiry: 14 Apr

Delta: 26

IV Rank: 86.4

Premium: $1.06

Cap Req: $446

Annualised Prof: 212%