The CPI numbers are coming out tomorrow so it will be interesting to see which direction the market will move.
The expectation is that the CPI dropped, so we might see the market jumping up tomorrow.
For me personally, it wouldn't do much good as I have a few bearish positions, but I also have bullish positions so the two group should balance each other out.
So what's my trade for today?
The majority of the stocks have low IVR at the moment so I decided to go for another directional trade on an oil stock, #OXY (#Occidental). It's gone up substantially this year so I thought I'd try my luck with a call option against it. Another key reason is that the current oil price levels are no good for anyone apart from the oil producers so at some stage we should see the price coming down. However, we can't ignore the war with Russia.
OXY Monthly Chart
Trade Type: Short Call
Expiry: 21 Oct
IV Rank: 8.3
Cap Req: $671
Annualised Prof at Expiry: 114.%
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