By Dan Darrow

September 21, 2022

Intraday Update: HYG, GM

A 75bps raise by the Fed was expected, but indices are reacting more negatively to the dot plot out through 2023 (above expectations at 4.6%). I will send out an update around 3:00 pm ET regarding the trade ideas from yesterday's letter (as mentioned, we were holding off initiating the trades until later in the afternoon), but there are a couple of other trades that need to be adjusted now:

  • We are going to reduce some more risk on HYG. The ETF is down near key monthly support, and the Oct21 $75 - $72 put spread roll down is nicely into the money. The plan will be to close the current spread and roll down to a Nov18 $72 - $68 put spread. The next target is <71.
  • GM is losing key 20day sma trend support (F weak guidance yesterday took a toll on GM), and the Oct21 $42 - $46 call spread needs to be closed as the trade changes. We can revisit a new strategy on this if it resets above 41.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication