DailyPlay & Closing Trades (NYCB, MRNA, XLI)

Closing Trades

• MRNA: 77.7% Gain: Sell to close Apr 22, 2022 $140/$170 Call Vertical @ $18.48 Credit. Please note, this was the initial MRNA position that was opened on Thursday, March 10th. The other half of the MRNA position (Mar 18 $150/$175 Call Vertical) that was opened yesterday should remain open. 
• XLI: 62.2% Loss: Sell to close Apr 14, 2022 $89/$97 Put Vertical @ $0.79 Credit. 

NYCB Bullish Opening Trade Signals

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy 1/2 Long position of NYCB April 14 $11/12 call vertical for $0.42 mid AND Buy 1/2 position Long position of July 15 $11/$13 call vertical for $0.72 mid

Counter Trend Signal: This is a bullish strategy on a stock or ETF that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 5/10

View NYCB Trade 1

View NYCB Trade 2

Entering the Trades

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

Community banks thrive on local customers businesses and making the spread on lending long-term to them while borrowing short-term to fund it. Given that Monday was the fourth time down to the $10.84 level since last summer, and the first Sequential -13 signal of the entire decline that we’ve seen, we’d look for NYCB to move up near-term to $12 (top of channel) and a multi-month move up to $13. Thus, we’ll buy a half-sized position in both the April and July expirations, looking for last week’s low to hold as support.