DailyPlay Updates – July 7, 2022

Financials have not only stalled in relative terms to the SPX, but they’ve simply stalled in in absolute terms for the last month – four weeks in a row bottoming at the weekly TDST level of $30.89.

Given that layout – and knowing if they have a Friday close under $30 that I wouldn’t then still want to be long – let’s look to sell a July 29 $31.5/$30 put vertical spread for last night’s mid-closing price of $0.46.

I’ll recommend doing this in a half-sized trade (i.e., using a theoretical $50K size account). We’re collecting just over 30% of the strike differential.

XLF – Weekly

Lastly, as I am shortly ending my weekly webinar affiliation with Stockcharts, and I have already started my own In the Know Trader YouTube channel, where I will regularly continue to record my weekly educational seminars along with doing a select sector and stock-by-stock component analysis should enough people follow and watch the channel. Here’s the link to follow it: https://bit.ly/3zUjzT0

I regularly get about 1000 views per week, so if I can get to nearly 500 followers by Labor Day, I will continue doing these shows for those of you who want to keep learning the ways that professional money managers and traders approach markets. 

– Rick Bensignor
Chief Market Strategist