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Darren Krett

Saturday 14 October 2023

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Weekly report - Trade strategies amid Middle East tensions

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https://youtu.be/D80cck1sWcg?si=FBlmsH-M8Qf0ymvj

Hi everyone, Darren Krett, Leviathan Financial Management with your weekly market report. Bit more of a somber tone this week after the debacle that's going on in the Middle East. However, having said that in our little sand pit in the corner of the world with the financial markets, we were pretty much unaffected by it.

S& P was holding up really well and in fact it's higher than it was last week., but an eye should be kept on what we described last week's, treasury yields in the bond market as the 30year bond heads back to 5 percent and if this continues the S& P will go down. One of the trades we liked and we still like this one here the 3550/3600 put spread, It's the most simple trade and not only that it's in it's very low percentile when compared to an equal Equidistant out the money put spread , at this stage of the cycle, , this particular one we're looking at, , is in its third percentile. So it's very low, great value and I like that trade. It's, if you were worried about S& P going down, I think this would be the trade to do. Dec expiration. So you still have a little bit more time left in it. One of the other trades I like for people who are concerned about the Middle East and how that will affect, uh, the markets. Lockheed Martin is a company that will likely benefit from an escalation in, uh, in things going on over there. Uh, there are good trades to do there. One specifically when running big boy and saying, okay, one upside. The one I, I particularly like, is this one here out of that list. The LMT231215 425/440/470 CFLY 1x-3x5 Which is a call fly ratio one by three by five, which means you're actually buying an extra option on the upside and what effectively, you know, first of all, that's in also in its low end of valuation is 12th percentile, but also will give you a nice healthy P& L if we were to rally, especially short term.

If Lockheed Martin goes back above 500, which is where it was, um, earlier on this year, then you would actually make a lot of money out of this fly. Uh, it's, uh, you know, very reasonably priced. I would suggest if that's your fear, that's definitely worth buying, uh, that one there. Um, so that's good value.

Next week we also have, uh, Tesla's earnings coming out. Nothing really stands out to take advantage of, but there's not too bad a, uh, risk or trades here. This one particularly, this was more of a shorter term. Uh, trade. It will give you a nice, uh, play again. Uh, this will look good on a strong rally. And of course, uh, longer term if you target that middle strike here, uh, then that would also be a good trade.

Uh, so it gives you a bit of flexibility here with an extra call on the upside. So the, and that's looking at expiration for the 27th of October. TSLA231027 270/282.5/310 CFLY 1x-2x2 Again, giving you A little bit more wiggle a room after the numbers and just targeting, you know, a moderate rise. And so really TSLA231027 270/282.5/310 CFLY 1x-2x2, anything crazy happens to the upside, you'll do fine.

And even a moderate rally to 2 82 to 2 85, and you'll be laughing, uh, especially if you hold that one, um, towards, uh, expiration. Anyway, that's all from me. If you have any questions, please hit us up at leviathanfm. com and otherwise have a wonderful weekend.

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