DailyPlay – Opening Trade (JPM) Closing Trade (AAPL) – July 3, 2023

Closing Trade

• AAPL – 107.74% Loss: Buy to Close 6 Contracts (or 100% of your Contracts) July 28th $190/$195 Call Vertical Spreads @ $3.22 Debit. DailyPlay Portfolio: By Closing all 6 Contracts, we will pay $1,932. 

JPM Bullish Opening Trade Signal

View JPM Trade

Strategy Details

Strategy: Long Call

Direction: Bullish

Details: Buy to Open 3 Contracts July 21st $140 Calls @ $5.98 Debit per contract.

Total Risk: This trade has a max risk of $1,794 (3 Contracts x $598) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $598 to select the # shares for your portfolio.

Trend Continuation Signal: This stock is in a bullish trend and further upside is expected.

1M/6M Trends: Bullish/Bullish

Technical Score: 7/10

OptionsPlay Score: 99

Stop Loss: @ $2.99 Credit (50% loss).

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Friday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

Investment Rationale

As US equities powers higher and even broadens a bit, there is a risk-on sentiment, despite a dislocation with underlying fundamentals and economic numbers. One of our long holdings JPM has started to breakout above its recent trading range high of $144. We are taking this opportunity to add to our position for further upside and raising our stops on all contracts to the original breakeven price of $4.30. Adding 3 contracts of the July $140 Calls @ $5.98 Debit. By raising our stops an adding to a position we would risk a total of only roughly $500 for unlimited upside with a position size that is roughly 4% of our total portfolio value. 

We also need to close AAPL from our portfolio as it marches past the $3 Trillion mark and losses exceed 100% of the premium collected.