DailyPlay Trade Adjustment (C) – October 29th, 2021

Adjustment Trade

C Trade Adjustment – 29% Unrealized Loss. Roll October 29, $72 Call to November 19, $73 Call to collect more premium:

• Buy to close October 29 $72 Call @ $0.04 Debit
• Sell to open November 19 $73 Call @ $0.66 Credit
• This results in a reduced cost basis for the C Call Diagonal Trade from $3.81 to $3.25. 

DailyPlay Positions Outlook:

The short leg of the C diagonal spread will expire today and we continue to offset the trade cost of the long C call option by selling an OTM call to reduce the cost basis of the C Dec 17 $70 Call and collect more premium. This results in a new cost basis of $3.25 for the C diagonal trade. 

As a volatile earnings week comes to a close with most of the “Big Tech” names reporting a mixed bag of earnings, the major indices continue to grind higher. However, disappointing outlooks for AMZN and AAPL’s earnings yesterday after the bell will likely result in SPY and QQQ opening lower with some volatility expected this morning. 

Prakash Vijayanath
Analyst