Are we going to see the interest rates climbing through the roof?
According to some experts the bond market is showing signs that we won't.
Six months ago I also said that we may see some increase but the world leaders will not have the guts to increase it much as the entire system will collapse and it will be a lot worse than what we have seen during the GFC.
What frustrates me is that the leaders are trying to address the inflation from the demand side by increasing interest rates, which ultimately reduces the buying power of people and businesses, thus reducing the demand.
In my opinion, the inflation should be addressed on the supply side. There are huge amounts of very much capable people refusing to work or are blocked from working due to non-sense lockdowns.
Medical experts are seeing an increasing number of mental health issues, which adds more fuel to the problem.
I must say, we are in a big circus and we have to be extremely alert.
So what's my trade for today?
Given that we just entered another earnings season, I decided to trade a commodity, that has no earnings: #UNG (#UnitedStatesNaturalGas). I am bullish on the gas due to the war in Ukraine so I opted in for a very wide strangle.
Trade Type: Short Strangle
Strike: $17 / 32
Expiry: 19 Aug
IV Rank: 72.8
Cap Req: $804
Annualised Prof at Expiry: 118%
Closed at $1.33 for an annualised profit of 52%.
Rolled up the put side to $24 for $0.25 credit.
Total credit: $1.72
Rolled up the put side to $22 for $0.24 credit.
Total credit: $1.47
Rolled up the put side to $20 for $0.27 credit.
Total credit: $1.23