Well it seems that inflation is currently the name of the game for the current market dynamics. The CPI came out stronger than expected, with August projections estimated as high as 5.4% by the end of the year. The market is really looking to see when this data will finally break the bullish upswing, as current Federal QE , massive amount of government spending on covid relief, and international price risks come into play. A real market pull back is really looking likely, and a shift towards more investing in commodities is on the horizon. As for our trades yesterday here are the adjustments I made while the NASDAQ went way down yesterday.
#MRNA: MRNA was down over 7% at one point yesterday, as board members sold off shares, realizing gains while the price is high. Also, reports came out that another booster shut might not be necessary, driving down expected revenues . I bought a put with a 400 strike hedge to capture the downswing yesterday and then sold a 360 put as well towards the bottom.
#AMCE: With our call spread initially put on, AMC continued to turn a bit sideways, not having any real price movement. I sold more calls at the 70 strike to cover more of the cost of the long call and to capture more EV on the sideways projection.
#TSLA: TSLA was also down , as ARK investments continued to sell more shares of the stock. ARK still has a high projection on the Elon run company, but that is not something new in their strategy as they regularly enter and exit stocks for PnL realized values.
Not much else changes, as the market bounced back in the afternoon as expected. I will continue to monitor and watch, while taking in the theta gains as the clock continues to tick towards expiration.
