Close Menu
    Wall Street

    How to play the coming inflation (CPI and PPI) numbers this week?

    Hey folks,

    So as you know, the CPI and PPI inflation numbers are coming out on Tuesday and Wednesday, of this week and so, I was wondering what is the best way to play the CPI and PPI inflation reports? Any advice would be greatly appreciated. Thanks and good luck!

    How to play the coming inflation (CPI and PPI) numbers this week?
    byu/StraightAd798 inwallstreetbets



    Posted by StraightAd798

    View 34 Comments

    34 Comments

    2. Hendrix909 on

      Weekly calls slightly OTM if you think it’ll be good. Weekly puts slightly OTM if you think it’ll be bad. Pretty straight forward.

    5. AdventurousCowMooo on

      Look at the chart honestly.

      If Green = Good = Buy Call

      If Red = Good = Buy Put

      In options, you make money on movement & volatility, not growth or loss.

    12. Putrid_Pollution3455 on

      There’s a chance of higher volatility, so you can either sell some options and enjoy that Ivy crush, maybe an iron condor if you expect it to move a lot but generally go sideways… You could buy calls if you think the information is going to be good or you could buy put if you think the information is going to be bad

    13. OrdinaryReasonable63 on

      Buy vix calls if you think July CPI comes in a little hot. I think this market is gonna overreact if it’s anything above 0.0

    14. justthefactualsman on

      You don’t play them. You wait and see how the market reacts and trade accordingly. Unless you’re a severely regarded artist in which case you yolo the piss out of it in a random direction.

    16. nsfwftwbaby on

      Inverse whatever trend it is on cpi day prior to the data release. 100% works 50% of the time.

    18. Foreign_Reindeer_402 on

      I think it’s gonna come in cooler than expected, gonna wait for the print to trade any direction

    19. caprishouz on

      Don’t guess. Wait for the trend to commence in the AM and join the party ![img](emote|t5_2th52|27189)

    20. FormalBananaSuit on

      Buy to open strangles the day before at lunch and close them out a minute before close of day

    22. RossRiskDabbler on

      1) you know the fixed dates. Do an average backrest on periods which resemble this state of economy (inflation/rate)
      2) buy OTM calls/puts far ahead of time to capture volatility.
      3) also index (to capture volatility)
      4) research luxurious firms listed – as higher inflation means less purchasing power. Do the analysis of firms which financially already struggle (cash<debt). It means it is likely they need to up their margins, thus costs (while purchasing power of supply is going down). So I do a straddle + calendar spread (next earnings) + short stock
      5) I want higher leverage so I buy commercial paper and commercial notes of cash rich low debt firms like Chevron and call my brokers to upper the leverage

      If purchasing power and cpi goes up, yields on short term government bonds will go up as people have less to spend in the economy.

      Pick the main export product of the country, and like I did in New Zealand (for one event I had over a 100 trades) – kill it off with fx pairs.

      So if they export to Britain with higher CPI/PPI

      USD;GBP goes down.

      Other way around.

      USD/GBP goes up.

      I pick both and use a straddle on both to pick two free lunches.

      It’s quite literally how I traded every asset class in New Zealand.

    23. Middle_Name-Danger on

      A snippet of insight from my industry: I don’t know how much it’s talked about, but the cyber attack that took down CDK for several weeks had a big impact on car sales, and thus consumer lending. The big banks have been offering lower auto loan rates to prime borrowers.

      Other observations, my email inbox has been blowing up with promo emails and sales at online retailers. Maybe sales are slowing down generally for discretionary purchases?

    25. Zueter on

      The real problem is not what the number comes in at, but how the market reacts to it. Is good news good news or is good news bad news this week

    26. N_FLATION on

      Buy puts Wednesday. Retail sales data is going to be weak and the market will surely sell off Thursday morning

    27. Conservative_Trader on

      From what I can see, CPI and PPI are going to be higher than expected, which means Fed’s plan will be much more complicated. So, short everything.

    31. elpresidentedeljunta on

      The best way to play them is to have enough data to predict the inflation more precise than anybody else in the market and thus forsee, if the news will be good or bad. If you don´t have that kind of data the best way to play the game is to not play it.

    32. BulletPlease on

      Everyone on edge of their seats scared to get in right now because indices are coming back to fib retracements and are expected to dump hard, so, the next dip is what’s being assumed will be the massive buy.

      BUT, PPI, CPI are going to be cooked to come in lower than expected — catching everyone off sides with the massive double gap up and double gap ups are to be bought, not sold. IWM is +3% YTD, lol… Lots of catching up to do and I think this week is the perfect week to start the humongous bounce back.

      8/16 IWM $220C and 8/21 IWM $225C — GOLD MINES. 50X bags — heard it here first.

    33. downboat on

      I have PUTs on Tesla and Nvidia.
      Calls on TLT.

      And I think I’ll lose money this week 😭

    34. Fun-Journalist2276 on

      There’s only 2 sides, up or down. 50% chance you will win or lose. Goodluck!

    Leave A Reply
    Share via