DailyPlay – Closing Trade (PDD) – May 8, 2024

Investment Rationale

As equity markets rally back above its 50D SMA, momentum has slowed and leading sectors have lacked participation. We are taking this opportunity to close out some of our long exposure with PDD on this rally as concerns of a pullback are elevated. 

Closing Trade

• PDD – 77.22% gain: Sell to Close 2 Contracts (or 100% of your Contracts) June 21st $115/$140 Call Vertical Spreads @ $16.18 Credit. DailyPlay Portfolio: By Closing both Contracts, we will receive $3,236. We opened these 2 Contracts on April 9 @ $9.13 Debit. The gain, therefore, is $1,410. This translates to a gain of almost 1.5% on our Portfolio.