DailyPlay – Closing Trade (MCD) – October 23, 2023

Closing Trade

• MCD – 33.63% Gain: Sell to Close 2 Contracts (or 100% of your Contracts) Dec 15th $250/$270 Call Vertical Spreads @ $10.41 Credit. DailyPlay Portfolio: By Closing both Contracts, we will receive $2,082. We initially opened these 2 Contracts on Oct 19 @ $7.79 Debit. Our average gain, therefore, is $262 per contract. 

Investment Rationale

As treasuries continue to selloff aggressively, bears have taken control of the equity markets last week. With the $4220 major support level on the S&P at risk of falling this week, we evaluate our current open positions. We currently have 2 earnings plays this week with MSFT and SNAP on Tuesday after the close and 9 open positions. While I anticipate adding more earnings plays this week, I think it’s time to consider reducing some of the exposure in our portfolio. Our MCD position that we opened last week has seen a strong bounce, but momentum has stalled and at risk of pulling back. Despite not reaching our $268, I believe we must take profits on this trade after adding further exposure in this in the middle of last week. We are currently monitoring META and AMZN as earnings plays and PG and UNP as possible stocks to add bearish exposure in this week.