DailyPlay Taking Profits – XLE – February 3rd, 2022

XLE – 9% Gain: Feb 18, 2022/Jun 17, 2022 55/59 Call Diagonals​ @ $3.95 Credit

DailyPlay Positions Outlook:

As equities continue to recover this week, both the SPY and QQQ managed to break above key resistance levels at $453 and $353 respectively. A disappointing Meta earnings announcement has seen some risk aversion with the dollar index inching higher and moving back above the 21 D EMA. We take this opportunity to close out the XLE call diagonal trade for a limited profit after XLE rallied above the short $59 strike which limits further gains.