The market is testing the lows of June. I hope that it won't break through it as that could signal a free fall.
The currencies around the world are also on a dive compared to the USD. The British pound, for example, has not seen this level since 1985. I have never traded currencies but it seems like a buy and hold opportunity to me.
What caused the drop?
The cost of living, inflation, pandemics, money printing. They all contribute to the fall of currencies. For a currency to keep up it's value it needs to circulate but if the cost of living is too high then the circulation slows down.
You might be wondering why the USD holds up its value so well considering that they have similar issues as the rest of the western world. The short answer is that it's because the USD is used around the world and in transactions amongst nations. It's a dominant currency that places the US in a fortunate position and many nations don't like that.
So what's my trade for today?
#TGT (#Target). I sold the Oct $130 put option hoping for a bounce back after the epic fall in recent weeks. At the end of the day when people have less money to spend they are more likely to spend their money in budget friendly places.
TGT Weekly Chart
Trade Type: Short Put
Expiry: 21 Oct
IV Rank: 72
Cap Req: $1304
Annualised Prof at Expiry: 146%
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