DailyPlay – Closing Trade (BIDU) – September 19, 2023

Closing Trade

• BIDU – 92.31% Loss: Buy to Close 3 Contracts (or 100% of your Contracts) Oct 13th $144/$134 Put Vertical Spreads @ $7.00 Debit. DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $2,100. We initially opened these 3 Contracts on Sept 1 @ $4.25 Credit. Our average loss, therefore, is $275 per contract. 

Investment Rationale

As a reminder, our DailyPlay service is designed to not only provide trade ideas and signals to enter and exit, but also provide a daily reminder of the best practices for managing a portfolio of positions. It is instinctual to hold onto losing positions, hoping that they will return back to profits, and take profits as soon as they appear. However, our goal at OptionsPlay is to help shape you into a profitable trader. And that can only be achieved by ensuring that losers stay small and give winners have the chance to run. For today, as we look at our portfolio, BIDU has reached a stop loss level and requires management. We are going to close out the full position of BIDU and focus on managing our winning positions.