DailyPlay – Rolling Trade (MS) – July 9, 2024

Closing Trade

• MS – 37.10% gain: Buy to Close 7 Contracts (or 100% of your Contracts) August 2nd $97/$92 Put Vertical Spreads @ $1.17 Debit. DailyPlay Portfolio: By Closing all 7 Contracts, we will pay $819. We opened these 7 Contracts on June 26 @ $1.86 Credit. The average gain, therefore, is $69 per contract with a total gain of $483. 

MS Bullish Opening Trade Signal

Investment Rationale

As Morgan Stanley bounces off our $97 support level based on our trade thesis and has now broken above its $100 resistance level, it’s time to roll out Put Credit Spread and lock in some profits and look for further upside from earnings. We’ll close our Aug 2 $97/92 Put Vertical and roll it out to the Aug $100/95 Put Vertical @ $0.98 Net Credit ($2.15 – $1.17). This would lock in about $1.00 per share worth or profits while continuing to seek bullish exposure in MS. 

We Roll this Trade by Closing the existing Trade and Opening a new one.

MS – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 7 Contracts August 16th $100/$95 Put Vertical Spreads @ $2.15 Credit per Contract.

Total Risk: This trade has a max risk of $1,995 (7 Contracts x $285) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $285 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that bounced higher off support and is expected to continued higher.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 111

Stop Loss: @ $4.30 Debit. (100% loss to the value of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View MS Trade