DailyPlay – Portfolio Review – August 8, 2024

DailyPlay Portfolio Review

Investment Rationale

Investors are nervously awaiting the jobless claims numbers this morning, as softness in the labor market and uptick in unemployment last week sent markets reeling lower. Further surprises in Jobless Claims this morning could shift sentiment back towards the bearish side and retest the $5120 lows on the S&P 500. We will take a step back from adding new exposure until we have better clarity to the health of the US labor market. 

Our Trades

AAPL – 43 DTE

Bearish Credit Spread – The $210 resistance level has held so far, we are looking for the stock to start turning lower from this level, a breakout above $210 would warrant cutting losses. 

COST – 43 DTE

Bearish Debit Spread – The breakdown below its key $840 support level, targets $715 to the downside and remains within our bearish thesis. 

MSFT – 29 DTE

Bullish Credit Spread – Remains oversold and we are looking for a bounce back towards its $415 resistance level. 

NVDA – 43 DTE

Bullish Credit Spread – We expect volatility to remain elevated over the next few weeks but valuations and levels remain attractive for long exposure.