DailyPlay – Rolling Trade (MS) – July 15, 2024

Closing Trade

• MS – 42.86% gain: Buy to Close 7 Contracts (or 100% of your Contracts) August 16th $100/$95 Put Vertical Spreads @ $0.92 Debit. DailyPlay Portfolio: By Closing all 5 Contracts, we will pay $644. We opened these 7 Contracts on July 9 @ $1.61 Credit. The average gain, therefore, is $69 per contract with a total gain of $483. 

MS Bullish Opening Trade Signal

Investment Rationale

After rallying nearly 8% since our initial trade in MS and rolling it already once to take profits. This position requires us to manage once again ahead of earnings tomorrow morning. I believe that it is best to take profits on our 2nd trade and reset the short put vertical again to its current price. We are rolling our MS position to the Aug 9 $104/100 Put Vertical to collect another $1.61 in credits. 

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 8 Contracts August 9th $104/100 Put Vertical Spreads @ $1.67 Credit per Contract.

Total Risk: This trade has a max risk of $1,864 (8 Contracts x $233) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $233 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: 9/10

OptionsPlay Score: 96

Stop Loss: @ $3.34 Debit. (100% loss to the value of premium)

View MS Trade

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 Friday’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