DailyPlay – Closing Trade (CNC) – November 17 2022

Partial Closing trade

• CNC-96.84% Gain:  Buy to Close 4 Contracts Nov. 18th $75/$72.50 Put Verticals @ $0.95 Debit. DailyPlay Portfolio: By Closing the remaining 4 of 8 Contracts, we will be paying $380. We partially closed this trade on November 2 with 4 Contracts at a $0.05 Debit. Our average gain for this trade is therefore 95.79% and our average cost basis to exit this trade is $0.50 Debit.

Investment Rationale

Stocks took a breather yesterday, despite lower rates and a lower dollar.  Target’s (TGT) warning of slower things to come put pressure on the broad market, even though Lowes’ CEO said he doesn’t see any sense of slowing. SF Fed President Mary Daly also commented saying that there is no Fed pivot even being discussed, so that probably kept a lid on buyers coming in on Wednesday.

Yesterday’s decline still posted a daily SPX Setup +7 count (towards a +9), though the Countdown remained on a +10 (towards a +13). That would still indicate that we are nearing a potential trading top – possibly even by sometime next week.

SPX – Daily

We still have on the CNC Nov. 18^th short $75/$72.5 put spread, up 97% on this remaining portion. With it expiring Friday, let’s exit the balance today.