DailyPlay – Closing Trades (BEAM, UAL) Conditional Trade (XLV) – August 18, 2022

Closing Trades

• BEAM – 75.51% Gain: Sell to Close 4 Contracts Sept 16, 2022 $60/$50 Put Verticals @ $4.30 Credit. DailyPlay Portfolio: By closing 4 of the 8 Contracts, we will be receiving $1,720. 
• UAL – 61.39% Loss: Buy to Close 3 Contracts Aug 19, 2022 $38/$47 Call Verticals @ $1.17 Debit. DailyPlay Portfolio: By closing the remaining 3 of 6 Contracts, we will be paying $351. We Closed 3 of the 6 Contracts for this trade on July 27 at a $0.98 Debit. Therefore, the average loss on this trade was -64.53% and the average cost basis to exit this trade is $1.08 Debit.

Conditional Trade

• XLV – On August 16th we published a Conditional Trade for XLV. As XLV did not meet the Condition, we are canceling this DailyPlay trade.

Investment Rationale

We finally saw some profit-taking yesterday in the market as some major earnings reports disappointed vs. expectations. I do believe we’ll be seeing more of these disappointments as time goes forward into the fall, and it is just one of the reasons that I think the risk now to buying stocks is higher than the potential likely reward. 

Yesterday we put on a bearish put spread in BEAM, and with the stock having sold off 6.3% on Tuesday, the trade is already up some 75%. That’s a heck of a good one-day return, and as such, I’m going to suggest we take 4 of our 8 contracts off today to lock in the solid gain.

BEAM – Daily

Additionally, Monday’s conditional DP in XLV did not get its necessary upside breakout for us to buy the call spread. I am officially canceling the idea.