DailyPlay – Conditional Opening Trades (GLD) Partial Closing Trades (MDT, META, SPY, TLT, ABBV) – January 17, 2023

Partial Closing Trades

• MDT – 44.33% Loss: Sell to Close 1 Contract (or 25% of the remaining position) Jan 20th $80/87.5 Call Vertical Spread @ $1.13 Credit. DailyPlay Portfolio: By Closing 1 of the remaining 4 Contracts, we will be receiving $113.
• META – 52.68% Gain: Buy to Close 1 Contract (or 33% of the remaining position) Feb 3rd $123/$113 Put Vertical Spread @ $1.76 Debit. DailyPlay Portfolio: By Closing 1 of the 3 Contracts, we will be paying $176.
• SPY – 40.76% Gain: Sell to Close 1 Contract (or 33% of the remaining position) Feb 10th $387/$405 Call Vertical Spread @ $11.12 Credit. DailyPlay Portfolio: By Closing 1 of the 3 Contracts, we will be receiving $1,112.
• TLT – 78.92% Gain: Buy to Close 1 Contract (or 25% of the remaining position) Feb 17th $100/$95 Put Vertical Spread @ $0.39 Debit. DailyPlay Portfolio: By Closing 1 of the remaining 4 Contracts, we will be paying $39.
• ABBV – 63.97% Gain: Sell to Close 1 Contract (or 50% of the remaining position) Feb 17th $160/$145 Put Vertical Spread @ $6.28 Credit. DailyPlay Portfolio: By Closing 1 of the remaining 2 Contracts, we will be receiving $628.

GLD Conditional Bullish Opening Trades

GLD Conditional Trade 1

View GLD Trade 1

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 2 Contracts Feb 17th $173/$187 Call Vertical Spread @ $6.36 Debit.

Total Risk: This trade has a max risk of $1,272 (2 Contracts x $636).

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

1M/6M Trends: Bullish/Bullish

Technical Score: 8/10

OptionsPlay Score: 106

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 that this is a Conditional trade. The condition that has to be met, before you enter this bullish trade is if we see a pullback to $173. Therefore, the Debit for this trade will be different than what we are showing here, which is only acting as a guideline. 

GLD Conditional Trade 2

View GLD Trade 2

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 2 Contracts Feb 17th $168/$187 Call Vertical Spread @ $10.66 Debit.

Total Risk: This trade has a max risk of $2,132 (2 Contracts x $1,066).

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

1M/6M Trends: Bullish/Bullish

Technical Score: 8/10

OptionsPlay Score: 108

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 that this is a Conditional trade. The condition that has to be met, before you enter this bullish trade is if we see a pullback to $168. Therefore, the Debit for this trade will be different than what we are showing here, which is only acting as a guideline.

Investment Rationale

Stock futures traded mildly lower on Monday as US markets were closed for MLK Day. The market has had a very strong first-half of January, and the SPX is again poking right up against its downtrend line from all-time highs – the same line that it has failed against a few times last year.

SPX – Weekly

I recently wrote about wanting to get long gold on a pullback, and it hasn’t given us a chance to yet give in, recently hitting $1900/oz. and now less than 10% from all-time highs. The opportunity to get in may be coming as bullish consensus has reached 92% bulls in my preferred sentiment poll. As its most associated liquid ETF, the SPDR Gold Trust (GLD), hasn’t even once pulled back to its daily bullish Propulsion Momentum level on this rally. (It’s currently at $172.73.)

If the opportunity comes to get long near $173, let’s buy a 1% position of a Feb. 17th $173/$187 call spread for what is the then current mid-price. If GLD were to sell off even further to the $168 level, then I’d look to put on an additional 2% position there, buying a ~45 day out $168/$187 call spread at the then mid-price level.

GLD – Daily

We also have on 5 open positions that I have recently gotten you into, namely: MDT, META, SPY, TLT, and ABBV. The MDT is down 44%, and the others are up 53%, 41%, 79%, and 64%, respectively. I’d like to remove one spread in each of those 5 different positions today.