Market comments 20221007

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.

The stats

Trade Type: Short Put

Strike: $28

Expiry: 18 Nov

Delta: 17

IV Rank: 78.4

Premium: $0.64

Cap Req: $283

Annualised Prof at Expiry: 197%

IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info.

Closed:

None Rolled: https://www.tycoonitos.com/community/market-comments/market-comments-20220524 https://www.tycoonitos.com/community/market-comments/market-comments-20220520 https://www.tycoonitos.com/community/market-comments/market-comments-20220421