DailyPlay – Closing Trade (JETS) – September 7, 2023

Closing Trade

• JETS – 50.55% Loss: Sell to Close 26 Contracts (or 100% of your Contracts) Oct 20th $19 Calls @ $0.45 Credit. DailyPlay Portfolio: By Closing all 26 Contracts, we will receive $1,170 We initially opened this trade @ $0.91 Debit per contract. Our average loss, therefore, is $46 per contract. 

Investment Rationale

As the market digested the ISM numbers that suggested the inflation fight still has ways to go, investors had to shift expectations of Fed policy for the next FOMC meeting. The probability of another rate hike has elevated and the prospective of keeping rates higher for longer is now more likely. These sudden shifts in investor sentiment is certainly challenging to navigate and further require closing out trades that are not working quickly and focus on adding exposure to trade that are. The adjustment we are going to make to our portfolio today is closing out the JETS position which has reached the 50% stop loss level.