DailyPlay – Partial Closing Trades (BSX, ARCH, EBAY, USO) – April 11, 2023

Partial Closing Trades

• BSX – 65.54% Gain: Sell to Close 2 Contracts (or 50% of your remaining Contracts) April 21st $48 Calls @ $2.45 Credit. DailyPlay Portfolio: By Closing 2 of the remaining 4 Contracts, we will receive $490.
• ARCH – 61.26% Loss: Buy to Close 3 Contracts (or 50% of your Contracts) April 21st $135/$130 Put Vertical Spreads @ $3.15 Debit. DailyPlay Portfolio: By Closing 3 of the 6 Contracts, we will pay $945.
• EBAY – 26.04% Loss: Sell to Close 2 Contracts (or 40% of your remaining Contracts) April 21st Call Vertical Spreads @ $1.42 Credit. DailyPlay Portfolio: By Closing 2 of the remaining 5 Contracts, we will receive $284.
• USO – 26.84% Gain: Sell to Close 1 Contract (or 1/3% of your remaining Contracts) Jul 21, 2023 $71/$77 Call Verticals @ $2.41 Credit. DailyPlay Portfolio: By Closing 1 of the remaining 3 Contracts, we will receive $241.

Investment Rationale

Stocks opened lower yesterday on lower-than-expected Apple Mac sales figures, but the SPX bottomed by 10am and then trended higher the rest of the day, running into positive territory just minutes before the close. (That late surge might be the result of the influence of 0DTE options.) Nothing has changed from Monday’s action though: the market is still in a trading range, but I’m sensing a nearing change to that ennui coming sooner rather than later.

SPX – Daily

BSX posted a daily Setup +9 count yesterday, its first one in 5 months. We’re still long four $48 calls, up 65% on them. Let’s take 2 of 4 off today, and also raise your sell-stop on the last 2 to exit them if the option price falls to $2. (It’s possible this all happens today.)

BSX – Daily

ARCH has fallen beneath our lower strike price in our short put spread. As such, let’s exit 3 of 6 short $135/$130 put spreads we have on.

ARCH – Daily

We’re long 5 EBAY $42.5/$47.5 call spreads from $1.92. We’re down 26% on them even though the stock is higher than when we got in. (That’s classic theta decay, as we only have 10 DTE. Let’s exit 2 of them today to reduce the loss.

EBAY – Daily

We’re still long 3 USO call spreads that were part of a larger long iron condor trade we previously had on (and then removed the long put spread portion).  We’re up 27% on this, and with the stock having stopped 5 days in a row at the 200-DMA and the TDST line, let’s take off one of these today.

USO – Daily