DailyPlay – Portfolio Review & Closing Trade (PYPL) – May 23, 2024

Closing Trade

• PYPL – 63.87% loss: Sell to Close 9 Contracts (or 100% of your Contracts) June 21st $65/$72.50 Call Vertical Spreads @ $0.86 Credit. DailyPlay Portfolio: By Closing all 9 Contracts, we will receive $774. We opened these 9 Contracts on April 23 @ $2.38 Debit. The average loss, therefore, is $152. 

DailyPlay Portfolio Review

Investment Rationale

As equity markets rally today on the back of NVDA earnings, we continue to monitor our DailyPlay portfolio for alerts to cut losses and manage the trades. PYPL crossed below a key support level yesterday and requires us to close out the position, while our PLTR, RACE and ADBE positions improved yesterday. We will continue to monitor our portfolio for new opportunities and adjustments. 

Our Trades

ADBE – 29 DTE

Bullish Credit Spread – ADBE traded above $480 support during all trading sessions this week, and a break higher is therefore likely.

NKE – 29 DTE

Bullish Debit Spread – Support around $90 is holding and a move higher should ideally happen within the next few trading days, to support our bullish thesis.

PLTR – 29 DTE

Bearish Debit Spread – Trends remain bearish and a break below $20.50 would likely fill the gap toward $18.

PYPL – 29 DTE

Bullish Debit Spread – As support at $63 failed, we are closing this position today.

RACE – 57 DTE

Bearish Debit Spread – RACE gained over a percentage point since we opened this bearish trade. Our first price target is $400.