Markets are trading lower with weekly jobless claims coming in at about 1.4 million for the week - along with 2nd quarter GDP declining 32.9%, slightly less than the 34.7% decrease the market had been expecting.

We initiated our first option trade in UBER yesterday. We'll look to hold these through earnings, unless we get a quick acceleration higher in which case we could take profits. We got into the option trade with around a debit of $67 per pair this morning. We bought the $32.50 call at around $0.87 on the open, and sold the $35.50 call at around $0.20.

I'm looking for Uber to trade higher into earnings or a possible beat on next Thursday night. I liked the bull call spread yesterday because I don't expect the stock to skyrocket just yet, they are still facing a lot of headway with the decrease to their ride sharing business - but I do like exposure to the upside coming into their earnings, and the credit from the $35.50 call helps line up the risk vs. reward at about 1 to 4 for this trade.

If you wanted a simpler Uber options trade you could simply purchase a call near the money through earnings, but I like the idea of receiving a credit for the call $5 out of the money to help our risk vs. reward.

Disney looks to open slightly lower this morning. Florida reported an additional 9,450 lab confirmed cases yesterday. The death toll rose by 216 to 6,333, the highest single-day death count for the state. Disney is still well within it's uptrend channel on a daily chart.

Uber looks to open at about $30.65, it's trading near the lower end if it's recent trading range, and we'll look for Uber to hold strength at around the $29 to $30 area.

STZ has started off with some nice strength from our entry at around $180 - $180.50. I sent out the buy recommendation Tuesday at 11:13am EST and the stock went from around $179.50 to $181.50 by noon EST.

AMZN, AAPL, and GOOG all report earnings this afternoon. AMZN options are pricing in a $145 expected one day move right now. GOOG options are pricing in $56.57 one day move around earnings. AAPL options are pricing in a $11.73 move.

The President also tweeted out the idea of delaying the Presidential election at about 8:46 am EST, which is actually when the market started to sell off, not at 8:30 on the economic numbers. I know we've all grown used to ignoring some of what the President tweets, whether you agree with him or not, but the idea of the sitting President arguing less than 100 days out from election day that all the results will be fraudulent so we just should delay the election and let him stay in power, is something the market may begin to price in.

5 states currently already vote entirely by mail, Colorado, Hawaii, Oregon, Washington and Utah. The rest of the states can be divided into two categories: those that allow any registered voter to apply for mail-in ballots, and those that require an excuse. Living in Florida with COVID at almost 10k new cases a day, I am fortunate to have the ability to request a mail in ballot which I've already received.

This is not politics, this is reality - markets will begin to price in the volatility of an election, especially if you anticipate that the sitting President will argue the results are fixed and he should be allowed to remain in power, which is looking more and more likely as each day passes.

The volatility leading up to November is gonna be fast and furious when combining the election with the prospects of how the economy behaves with COVID still looming. Stay tuned for more updates!

Current positions

Long Term portfolio:
Long half a position in DIS at $118.63. Stop is $98.45.
Long half position in UBER at $31.50 or better. Stop is $26.24.
Long half position in STZ at $180.50. Stop is $164.05.

Short term portfolio:
Long STZ at $180.50. Stop is $174.80.
Uber call spread at net debit $67 - bought $32.50 Aug 7th call and sold $35.50 Aug 7th call.