DailyPlay Taking Profits (CLF) – Feb 11, 2022

Taking Profits

• CLF: 80% Gain: Buy to close Mar 18, 2022 $14/$16 Put Vertical @ $0.14 Debit. 

CLF has reached a daily Setup +9 count and is now by its 100- and 200-DMAs. We have collected the bulk of the premium, and now that earnings are out of the way, the only real downside risk we now have is basic market risk. However, even though chances are good that we would reap the full credit amount we took in, we will officially exit the trade now and close the remainder of the position. 

Please note, that half of this position was closed on Feb 4 at $0.35 Debit. Therefore, the average price of closing the entire position is ($0.35 + $0.14)/2 = $0.25. 

Rick Bensignor

Chief Market Strategist