DailyPlay – Closing Trade (TXN) – September 28, 2023

Closing Trade

• TXN – 33.28% Gain: Sell to Close 9 Contracts (or 100% of your Contracts) Oct 20th $165/$150 Put Vertical Spreads @ $6.51 Credit. DailyPlay Portfolio: By Closing all 9 Contracts, we will receive $5,859. We initially opened 5 Contracts on Sept 13 @ $4.08 Debit and then on another 4 Contracts on Sept 26 @ $5.89 Debit. Our average gain, therefore, is $163 per contract.

Investment Rationale

The underlying market continues to be driven by bonds, as 10-year yields hit a new 10-year high we continue to target 5.2% to the upside. In this environment, we are bearish on equities, however markets are quite oversold and showing signs of exhaustion on this selloff. This increases the probability of a bounce from here and we are going to take this opportunity to reduce some bearish exposure and take profits. If markets bounce we will look to add to bearish exposure where the risk/reward is more favorable. Look to take profits on the full TXN position as price action is showing exhaustion to the downside.