Market comments 20220809

Very small moves today in the overall market. I suppose everyone is waiting for tomorrow's CPI announcement.

What's my expectation?

According to multiple sources the inflation in the US has peaked but the interest rates must be raised further and maintained at high levels for a longer period of time to ensure that the inflation doesn't turn around and continue going high.

So what's my trade for today?

#SWK (#StanleyBlackAndDecker). The stock fell 5.6% today and has fallen quite substantially over the past 7 months. In fact, it was $118 only 2 weeks ago and plummeted after the earnings. The $80 put strike is pretty much at the Covid level so I am quite confident in selling a naked put at this point.

The stats

Trade Type: Short Put

Strike: $80

Expiry: 16 Sep

Delta: 14

IV Rank: 63.6

Premium: $0.95

Cap Req: $805

Annualised Prof at Expiry: 113.%

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