Whats The Plan/Trade/Thought
- Market is returning to a Bullish / Ranging state
- With the Evergrande dip it seems we now have room for another bullish retracement
- XRT had no major reaction to Evergrade dip and is rising with the market and is now about Evergrande.
- Pricing at 0.50 seems decent (11% from strike) -80, 60, strike 85
- XRT has the best contract price of all that I am keen on
Imagine Yourself Taking The Other Side - Previously XRT was making lower highs. This is somewhat bearish
- It feels like I have no other options
- The retracement could be a short lived reaction to the sudden dip. People reentering the market
- Delta or inflation concerns could put a damper on retail driving drops
Imagine Yourself As A Neutral Observer - There is alot of optimising for the plan, this is a feeling I always feel before I enter a trade. The Opposite side has good simple arguments but feels dwarfed against the biased optimism
- I am rejecting the larger concerns of delta or inflation and placing alot on the reaction of Evergrade. Using it as a focal point on market sentiment
Look For New Information - Two days ago 21 Sep - Retail sales showed a rebound despite Delta. +0.7% probably fueled by back to school shopping. Online purchases were the key driver of the sales.
- Employment is down 0.2% and consumer prices increase by 0.3%
How Do I Feel Now - I think with the new information on the retail sales I feel more confident but still slightly concerned and aware about the previous lower highs
Sold 80 PUTS @ 0.47 Strike 85
% to Strike is 10.4% from entry
ATR percentile is low
Max Gain: est $3760
Total BP Block: 75K
Trade closed: target reached
Yatta!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.