Unemployment rate is better then expected, which caused the market to drop today.Why?Because if the unemployment rate is high then people can spend less, which lowers inflation. However, the exact opposite happened.When the inflation is higher then the stock market goes lower as the interest rates have to be raised.
I am hopeful of a bit of bounce back as I have a few positions that are expiring next week and am hoping that they will expire worthless.
So what's my trade for today?
I am hopeful for a bit of bounce back so I took a shot at #GM (#GeneralMotors) with a Nov $28 put. The stock came down from $42 a couple of weeks ago (I sold a call and made a bit of money) and it's currently at $33.62. The only real complication is that the earnings is scheduled for 25/Oct so hopefully I can close this position before the earnings.
GM Monthly Chart
Trade Type: Short Put
Expiry: 18 Nov
IV Rank: 78.4
Cap Req: $283
Annualised Prof at Expiry: 197%
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