JWN Bearish inclined naked calls 31 July expiry

18 giu 2022

Whats The Plan/Trade/Thought

• JWN (Nordstrom) is a luxury departmental store chain. With the concerns of the recession and the cooling signs of the job market, layoffs in tech and the overall retail leadership cautiousness during the earnings. I think this is the right direction especially since it is following the larger market direction
  
• US retail sales also post the first drop in 5 months as auto purchases plunge and inflation bites
  
  Risk Mitigation
• I have two S&R lines at 26 and 29.46 if it breaches 29.46 it is an immediate close
  
  Imagine Yourself Taking The Other Side
• I would not take a bull position on this. Especially since retail is one of the industries that will be hit first by inflation
  
  Look For New Information
• The slight decline in May, restrained by a plunge in vehicle purchases and other big-ticket items, suggesting moderating demand for goods amid decades-high inflation.
  
  I Feel
• I believe I am aligned with the larger market sentiment. While there might be a technical recovery. I think the drops are deeper than the climbs. Also the media keeps hammering into readers the “recession” word
  
  Trade Specs
• Sold 270 Calls @ 0.34
  
• Strike 31
  
• 26% to Strike
  
• BP Used: 66460
  
• Max Gain: 9004.5
  

16 set 2022

Trade chiuso: obiettivo raggiunto

Yay!