DailyPlay – Closing Trades (SLV, SPOT) – February 3, 2023

Closing Trades

• SLV – 3.64% Gain: Buy to Close 1 Contract (or 100% of your remaining contracts) March 17th $21 Cash Secured Put @ $0.53 Debit. DailyPlay Portfolio: By Closing the 1 Contract, we will be paying $53. 
• SPOT – 200.63% Gain: Sell to Close 1 Contract (or 100% of your remaining contracts) Feb 17th $90/$110 Call Vertical Spread @ $19.00 Credit. DailyPlay Portfolio: By Closing the remaining 1 of 3 Contracts, we will be receiving $1900. We Partially Closed this trade on Jan 18 at $6.45 Credit and then again on Jan 31 at $9.72 Credit. Our average cost basis to exit this trade is therefore $11.72 Credit, and our average gain is 85.5%.

Investment Rationale

Equities again moved higher on Thursday after the huge META report and Zuckerberg comments. However, S&P futures are down about 50 bps. as I write this late night after several large cap names reported earnings.

Today is another weekly options expiration, including a position we have open in the Feb.3rd short META $123/$113 put spread. The last spread we have on will go out with the full 100% capture of the premium received, and we did nicely on this one. (Many of you who listen to my Option Play webinars know that I personally bought META on the day it made the secular low last year. Under $89. I sold half yesterday precisely $100 above my entry point, as there is some potential resistance up here from the weekly cloud chart; the 38% Fibo retracement level at $201; and then the Propulsion Exhaustion level at ~$212. I choose not to be a pig.)

META – Weekly

Yesterday, the price of silver jumped > $1 (~4%) before giving back everything to close unchanged on the day. The SLV ETF closed down about 50 cents (~2.5%) and is now pennies beneath where we first put on the March 17th short $21 put spread. Despite the SLV’s trendline still holding as support, I’m not loving its price action, so I am going to recommend we get out today, and look for another opportunity to be bullish this or gold in coming weeks at a better price.

SLV – Daily

Let’s also now remove the SPOT Feb. 17th $90/$110 call spread we have on. We are up 200% on the last spread and it’s facing resistance on both the daily and weekly charts.

SPOT – Daily