DailyPlay – Partial Closing Trade (JPM, SBUX) – July 12, 2023

Partial Closing Trade

• SBUX – 32% Loss: Sell to Close 6 Contracts Aug $100 Puts @ $3.15 Credit and Sell to Close 4 Contracts Aug 25 $100 Puts @ $3.28 Credit. 
• JPM – 98% Gain: Sell to Close 4 Contracts July $140 Call @ $8.20 Credit. 

Investment Rationale

Today’s CPI print will be pivotal with the market currently expecting the Fed to raise rates during their July meeting. With inflation expected to continue to decline, the decline is a potential catalyst for the Fed to hike only one more time before the end of the year, which would be a bullish tailwind for both equities and bonds. Viewing our positions with multiple long exposure positions that we have open, we are just a few cents from our stop loss levels on SBUX of $3.00 and may close that position today if SBUX continues to show strength. Ahead of this important CPI print it’s time to take profits on half of our JPM position that we have added to. Sell to Close 4 Contracts July $140 Calls @ $8.20 Credit and keep the other 4 contracts into earnings.