DailyPlay Taking Partial Profits – CLF – February 4th, 2022

Taking Partial Profits

• CLF – 51% Gain: Short Mar 18, 2022 14/16 Put Verticals​ @ $0.35 Debit. Close half of this position. For example, if 10 contracts were opened for this trade, we recommend closing 5 contracts. 

DailyPlay Positions Outlook

Equities reversed lower today after recovering earlier this week. SPY declined 2.35% and is now back below a key $453 area which may indicate that further downside is expected with additional support at $428. With the Non-Farm Payrolls announcement this morning,  volatility can be expected at the open so we take this opportunity to take partial profits on the CLF trade by closing half the position. 

We maintain our bullish outlook for CLF, but price has reached a key area at $19 and the CLF Put Credit Spread is at a 51% profit. By closing half the positon, we are locking in partial profits while still maintaining upside exposure in CLF.