XRT Retai ETF Straddle for China trade talks
You can't predict Trump, not even Trump can predict Trump. So who knows if we get a China deal or not...
With the market stalled out for the day, I'm looking forward to next week. I expect XRT to close the gap next week and stay in the $42 waffle range. Trade talks Thu/Fri and you know Trump will Tweet something because he can't help himself. So a straddle in tariff sensitive sector like transport or retail makes the most sense, buying XRT Oct 18 straddle Wed before close.
XRT options have good liquidity and low premiums.
With the market stalled out for the day, I'm looking forward to next week. I expect XRT to close the gap next week and stay in the $42 waffle range. Trade talks Thu/Fri and you know Trump will Tweet something because he can't help himself. So a straddle in tariff sensitive sector like transport or retail makes the most sense, buying XRT Oct 18 straddle Wed before close.
XRT options have good liquidity and low premiums.
Comment:
I'm kinda guessing they'll extend talk through the weekend.... might wait until Friday to buy the straddle, we'll see.
Comment:
Candlestick pattern is identical to the mid May bear flag, might be worth a few calls at the end of the day if it holds for a one day play.
On a big red day like today, I like to wait until the end of the day for any long positions. No FOMO for me in case there's another leg down.
On a big red day like today, I like to wait until the end of the day for any long positions. No FOMO for me in case there's another leg down.