All eyes were on the Federal Reserve last week. Powell had a very bullish outlook for short term, as the Delta variant seems to be a concern and the market has already baked in end of year tapering by the Federal Reserve. The Middle East could affect the market, but it seems Wall Street has shrugged off all current global risk. Consumer spending seems to have slowed in August due to the Delta Variant, however; Renaissance Macro's Neil Dutta flagged the Chicago Fed's retail tracking survey, which suggests robust growth in spending has taken place this month. "It might be worth pointing out that the Chicago Fed is currently forecasting a 2.4% increase in retail sales in August".
This is a very bullish outlook, and I still expect the market to hit new highs. We are currently set up mostly long , trades placed on Thursday and Friday. Here are some of the key positions:
TSLA We sold puts 2std away from the current market price, about 10 contracts staggered 5 delta strike intervals. We sold a few calls to help get a middle and will continue to add the position. TSLA seems to be in a good trading range with a bullish upside, where we can get value on a staggered strangle.
MRNA: We are heavily long, with a similar strategy to Tsla. However, with the recent production issues, we added some more shorts on Friday. We bought a call OTM and sold some more calls . We have a room on the downside of a 40 point swing before we start getting pressure on our nearest sold put Strike. NVDA: We are still bullish NVDA, owning the underlying stock, and we sold puts on Thursday to add to this long position. GME: We are short GME, selling 450 strike calls that are already way green. We will keep an eye on GME and AMC, as the volatility seems to be back, creating over priced premiums on the options extrinsic values.
We have a few other positions in Google longs and such, and will keep you updated as the week goes on. But those are the key positions we are going to keep an eye on.