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So if you were there, you’re probably not surprised to see markets reeling a bit this morning… This is a classic quick overreaction to the news. The No. 1 fear growing right now is recession, and close behind that is stagflation, which this CPI data suggests. The week, however, can still be salvaged Friday morning with the next Producer Price Index inflation data… But for now, I expect bonds and small caps to take a tumble. CPI aside, markets were mostly flat heading into Wednesday’s FOMC minutes. Now for this week’s trade idea… Debit Spread on NOW This week, I’m targeting a debit spread in ServiceNow (NOW). This stock has been on quite a tear, up about 7.5% the past week and nearly 30% the past three months. The share price of this thing is sky high at $945 a pop, which means straight up call options are super pricey. The mechanics here are pretty straightforward yet potent. I’ve snagged the Oct. 11 expiration $945 call while selling the same date $950 call. The beauty of a debit spread like this is it caps our downside while giving us a shot at doubling our money on a minor move in the underlying stock price. If it gains a small 0.3% tomorrow, I’ll make a 104% ROI based on a $2.45 fill — I’ll take that all day! And finally, if you missed Wednesday’s live event, no worries… I’ll be live at 1 p.m. ET again today, Oct. 10, to dive into the top candidates… Not the candidates you’re probably thinking about for next month’s election, but rather stocks primed for potential breakouts! That’s much more exciting, in my opinion… Emcor Group (EME) is at the top of my list, and I’ll share why this stock could be the talk of the market next week — along with my THREE must-watch pre-election picks! We won’t just prepare for the coming elections, but also gear up for potentially the most lucrative months of the year — November and December! Graham Lindman Graham Lindman Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram: https://t.me/+abM5RWRJKrpkNWI5 Also check out my website at: https://grahamlindman.com/! *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein. Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio. Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. |
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ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. |
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