It's been a rough two-weeks with markets plunging lower and rates soaring higher.
After last weeks inflation number coming in hot, Wall Street thought Fed chairman Powell would be more dovish.
They were wrong!
He was more hawkish on rates than ever before during his presser.
We saw the S&P 500 free-fall 6.6% from Wednesdays session high, before some late day short covering into today's market close.
As I mentioned last week, this quick of a drop surprised me.
Even if you're an experienced market participants; navigating bear markets are challenging and nerve wracking.
It doesn't mean you're not going to make money, it's harder to make money.
That's why it's important we stay calm and focused.
It's okay to scale back, because risk is elevated with fast and larger swings.
And one of the many reasons I like to use options because I know my max risk at all times.
It was a slow week of activity and why we didn't add any new positions.
That expired today, which is frustrating because this was a winner turned into a max loss.
That's poor execution and management.
Those fumbles eats away gains and could be the difference between a profitable vs. down year on our PnL.
Look, It's okay to be honest and hold ourselves accountable...
....But it's not okay to dwell and beat ourselves up.
We're better than that and we focus on winning.
The CBOE Volatility Index (VIX) closed this week at 29.30.
That’s 3 points lower from last week, but indicates we will continue to see those 100 point swings in S&P 500.
Now let’s talk shop.
Today, this position will expire.
CHPT Sept. 23, 2022, $18.50/$20.50 call spread
Unfortunately, we don’t have more time for this to play out.
There’s nothing that you need to do, and they will be removed from your account over the weekend.
Taking losses isn’t fun, (especially when they were winners) but without the bitter, the sweet isn’t as sweet.
Here’s a recap of what we did this week.
Right now, we’re holding:
- VTRS Oct 21, 2022, $10 call
Have a great weekend and it's time to enjoy a ice cold spicy margarita - TGIF!
Joshua M. Belanger