DailyPlay Closing Trades – KMI, MRK – February 8th, 2022

Closing Trades

• KMI – 4.41% Gain: Long Mar 18, 2022 $16/$18 Put Verticals​ @ $0.71 Credit
• MRK – 50% Loss: Short Mar 18, 2022 $75/$80 Put Verticals​ @ $2.58 Debit

DailyPlay Positions Outlook

Equities continue to consolidate at current levels with SPY and QQQ ending the day in the red. However, key levels continue to be maintained. Despite the short-term outperformance of growth relative to value, yesterday saw value gain some momentum to continue its recent uptrend relative to growth. We take this opportunity to close out the KMI and MRK positions. KMI was a bearish earnings trade that did not move much post-earnings while MRK’s bullish thesis becomes invalidated with price unable to break above the $82 resistance level.