Whats The Plan/Trade/Thought
- I’ve been looking at the retail sector especially since the consumer willingness to spend has been shifting to services/ experiences and entertainment.
- Household cleaning, groceries, pets, alcohol, recreational vehicles all have seen drops in spend from Q1 2022 to Q2 2022
- Walmart has also started laying off people and have also seen a shift in consumer purchase behaviours due to inflation and pandemic lifestyle changes. I believe retails companies have already started becoming defensive
Risk Mitigation
- There is a key S&R line at 73.02 and the final one at 75.72. Once we see break throughs on these we will need to close
Imagine Yourself Taking The Other Side
- With the market becoming bullish since Mid May - June (NASDAQ & S&P). I think taking a bullish position is also possible in the short term. However besides market movement and a dropping oil price, I don’t see how the original bear situation has changed.
Look For New Information
- What am I rejecting the current bull run, which is does make me uncomfortable
- Next week we have earnings from Walmart, Home Depot, Target, Lowe’s, Bath & Body works. If I had remembered this I would not have entered
How Do I Feel Now
- Uncomfortable
Trade Specs
- Sold 110 Calls @ 0.42
- Strike 80
- % to Strike 11.94%
- BP Used: 83K
- Max Gain: 4620
Trade closed: target reached:
Yay!