DailyPlay Opening Trade (AMZN) Closing Trades (LLY, LOW, SYY, UNH, XLU) – April 25, 2022

View AMZN Trade

AMZN Bearish Earnings Trade Signal

Strategy Details

Strategy: Put Debit Spread

Strategy Direction: Bearish

Details: Buy to Open 1 Contract May 20, 2022 $2845/$2815 Put Vertical @ $12.70 Debit

Trend Continuation Signal: This is a bearish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 4/10

OptionsPlay Score: 113

Entering the Trade

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

With Amazon reporting earnings this week, the risks are skewed to the downside. With consumer spending seeing the first year over year decline, wage inflating remaining stubbornly high, profit margins are at risk of seeing declines for AMZN earnings. While AWS revenues are expected to remain strong, guidance for Q2 and the rest of the year may provide a larger driver of the stock’s price after the report. With AMZN underperforming both the market and its sector, the rangebound price action is at risk of breaking down and revisiting $2700 lows and $2000 extended targets to the downside.

Closing Trades

• LLY: 58.15% Loss: Buy to close 2 May 6, 2022 $285/$292.5 Put Verticals @ $4.40 Debit. DailyPlay Portfolio: Closing the remaining 2 contracts of this trade, we will pay $880. 
• LOW: 49.00% Loss: Sell to close 2 May 13, 2022 $205/$220 Call Verticals @ $2.56 Credit. DailyPlay Portfolio: Closing the remaining 2 contracts of this trade, we will receive $512. 
• SYY: 45.45% Loss: Buy to close 8 May 6, 2022 $86/$90 Call Verticals @ $2.40 Debit. DailyPlay Portfolio: Closing the remaining 8 contracts of this trade, we will pay $1920. 
• UNH: 53.67% Loss: Sell to close 1 May 20, 2022 $540/$570 Call Vertical @ $5.62 Credit. DailyPlay Portfolio: Closing the remaining 1 contract of this trade, we will receive $562. 
• XLU: 23.08% Gain: Sell to close 7 May 20, 2022 $73/$78 Call Verticals @ $1.76 Credit. DailyPlay Portfolio: Closing the remaining 7 contracts of this trade, we will receive $1232.