DailyPlay – Partial Closing Trade (BROS) – April 25, 2023

Partial Closing Trade

• BROS – 87.18% Gain: Buy to Close 1 Contract (or 50% of your remaining Contracts) April 28th $30/$28 Put Vertical Spread @ $0.10 Debit. DailyPlay Portfolio: By Closing 1 of the 2 Contracts, we will be paying $10.

Investment Rationale

A fairly insignificant day for stocks on Monday, as the SPX added but 3.5 pts. to 4137 as investors wait for a whopping 35% of all S&P 500 companies reporting earnings today through Thursday (including several mega-cap tech names). These three days could finally create the impetus for a breakout move higher or a several percent move down if we see disappointing results.  We’re all anxiously waiting for something to happen to get us out of the choppy range funk we’ve been in this year.

In our portfolio, we still have on 2 short BROS $30/$28 put spread that expires this Friday. The stock closed yesterday at $31.42. We’re up 87% on these, so let’s kick out one of these today. And should today go into the close with the stock trading under $30.05, we’ll sell the other one on the close.

BROS – Daily

We’re also short 3 MCK May 19th $370/$380 put spreads. With the stock at just shy of $362, we’re up 23% (although it feels like we should be up more). But earnings come out on May 8th, and until that report is out of the way, we’re not going to see the vol component of the spread price really come in. Considering the stock has not properly broken beneath its bearish Propulsion Momentum level at $358.68, let’s cover one of those 3 spreads today IF the stock is trading above that level going into today’s close.

MCK – Daily

Our long MDT call trade has been a homerun, now up 303% on the remaining 5 contracts. (We took 5 off yesterday.) On any day this week that the stock first trades above $90.50, we’ll take off another one contract.

MDT – Daily