DailyPlay - Opening Trade (DAL) Closing Trade (AAPL) - July 11, 2022

DailyPlay – Opening Trade (DAL) Closing Trade (AAPL) – July 11, 2022

By Prakash Vijayanath

July 11, 2022

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Closing Trade

AAPL: 83.08% Gain: Buy to Close 3 Contracts July 29, 2022 $130/$120 Put Verticals @ $0.55 Debit. DailyPlay Portfolio: By closing 3 Contracts, we will be paying $165.

Bullish Opening Trade Signal

View DAL Trade

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 12 Contracts Aug 19, 2022 $30/$35 Call Verticals @ $1.59 Debit.

Total Risk: This trade has a max risk of $1,908 (12 Contracts x $159 per contract).

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

1M/6M Trends: Bearish/Bearish

Technical Score: 3/10

OptionsPlay Score: 103

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.

Please note these prices are based on the previous day’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. This will be reflected in the Portfolio tab within the OptionsPlay platform.

Investment Rationale

Delta has continued to guide revenue numbers higher each month going into the summer, and we see an opportunity to take a bullish exposure going into earnings. The stock has not performed well, but relative to the JETS airlines ETF, Delta has continued to perform on par with the airline industry. While trading with a multiple under 5 times next year’s earnings, Delta airlines looks extremely inexpensive. Especially if we consider that Delta will generate the same amount of revenue in 2022 as it did in 2019, a massive turnaround, coupled with 100% EPS growth that is expected in 2023.

With the elevated implied volatility and risk of taking exposure going into earnings, we reduce our exposure by using an OTM Debit spread. Buying the Aug 19 $30/35 Call Vertical @ $1.59 Debit.

DAL Daily

DAL Trading Range