DailyPlay – Closing Trade (ALL) – December 22, 2023

Closing Trade

• ALL – 49.06% Gain: Buy to Close 6 Contracts (or 100% of your Contracts) Jan 19th $140/$145 Call Vertical Spreads @ $1.08 Debit. DailyPlay Portfolio: By Closing all 6 Contracts, we will be paying $648. We initially opened these 6 Contracts on Dec 5 @ $2.12 Credit. Our average gain, therefore, is $108 per contract. 

Investment Rationale

The major indices experienced a minor pullback from all-time high territory this week but price action still remains bullish as markets continue to price in a more dovish than expected Fed from last week’s meeting indicating that there would be 3 interest rate cuts instead of 2. While this does bode well for equities, we see signs of concern regarding 2024 consumer demand as Nike has cut their annual revenue forecast.