The Arena

Whew! Inflation is going down. At least that’s what I’m being told, I however can’t seem to find enough money to keep the truck gassed up or the pantry stocked but what do I know, here’s too the 200+ point rally in the S&P yesterday and another positive day today!

From an investment perspective, things do appear to be more stable than they were just a week ago. The Federal Reserve is downplaying intense interest rate hikes in favor of smaller incremental hikes more consistently. Couple that with the first lower inflation reading we’ve seen this year and the investment landscape (at least for now) doesn’t seem quite as dreadful.

That said, we’re a far cry from the bull market of the last 10 years and it wouldn’t shock anyone to see bearishness well into 2023. For now however, I think we can take a breath before this roller coaster inches closer to the next drop, and possibly the main event of this recession ride. Please remember to keep your arms and feet inside the cart at all times!

The Coach

With the market having found at least a temporary foothold I’m looking at a stock that’s had its legs quite literally chopped off. Here’s looking at you Dewey Cox! I didn’t know how easy it was to be cut in half.

Docusign Inc. has been absolutely, positively, and relentlessly pummeled since climbing above $300 per share in 2021. Trading today at $52.50 (including a 15% upswing today), Docusign Inc. has found a range that could make it an attractive play for an iron condor. That and the fact that I just don’t trust anything in the market right now makes this about the only trade I’m seeing on my watchlist today.

In any case, here’s an article from the Motley Fool discussing the state of Docusign Inc. going forward.

Docusign Inc. Price Chart
Docusign Price Chart November 11, 2022

The Attack

With the latest bull move, It looks like many investors are jumping in for an upswing. However, I just don’t see how that holds with very little having changed on the inflationary front, the interest rate front, the investor sentiment front, or even the geopolitical front. Virtually all the big market drivers still seem as pitiful today as they were earlier this year when the bear market “technically” started.

With that, I’m considering an iron condor on Docusign with slightly more than a month until expiration. Hold your horses though, the market seems bullish right now, the landscape seems bearish, and I’m feeling non directional. I’m thinking now might be a great time to take up golf and avoid the risk altogether. At least your putting game could improve, even if the green fee to play has become an investment of its own!

Bullish assumption

Buy To OpenSell To OpenEntry OrderTotal RiskProb. of 50% Profit
16 DEC 22 40 Put16 DEC 22 42.5 Put$70.00$180.0081%

Neutral assumption

Buy To OpenSell To OpenEntry OrderTotal RiskProb. of 50% Profit
16 DEC 22 65 Call16 DEC 22 62.5 Call$110.00$140.0067%
16 DEC 22 37.5 Put16 DEC 22 40 Put

Bearish assumption

Buy To OpenSell To OpenEntry OrderTotal RiskProb. of 50% Profit
16 DEC 22 62.5 Call16 DEC 22 60 Call$70.00$180.0083%

God Bless,

*This post is NOT a recommendation to buy, sell, or trade any security. The information provided within is strictly for entertainment. Traders or investors should always consult a registered financial professional prior to trading or investing.