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DailyPlay – Closing Trades (UBER, DHI) – September 25, 2024

Closing Trades

  • UBER – 90% gain: Buy to Close 8 Contracts (or 100% of your Contracts) Oct 4th $69/$66 Put Vertical Spreads @ $0.05 Debit. DailyPlay Portfolio:  By Closing these Contracts, we will pay $40. We initially opened these 8 Contracts on September 66 @ $0.47 Credit. Our gain, therefore, is $336.
  • DHI – 20.93% loss: Sell to Close 1 Contract (or 100% of your Contracts) Oct 4th $182.50/$207.50 Rish Reversal @ $0.52 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $52. We initially opened this Contract on September 18 @ $0.43 Debit. Our loss, therefore, is $9.
  • DHI – 13.41% loss: Sell to Close 1 Contract (or 100% of your Contracts) Jan 17th $170 Call @ $29.70 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $2,970. We initially opened this Contract on September 19 @ $34.30 Debit. Our loss, therefore, is $460.

Investment Rationale

Our CLX trade is staying on course with these Puts as the stock recently dropped to 161.28 (low on 9/19) from 165.95 so it might have doubled on that day. For now we are keeping these trades open as we still have 23 days left until.

We are closing our UBER trade today for $0.05 Debit. There are still 9 days left until expiry so makes sense to close for a nickel today.

DHI closed at $192.37. The stock ran up to 199.85 on the 19th and was at $195.35 when we put the trade on. I most likely would not have sold the call on that day; however, it has sadly reversed course and is now at $192.37 as of September 24. With only 9 days left for the options to expire, we can still sell the call for $0.30 at the midpoint, and I would do that. Additionally, I would buy back the short put at the midpoint price of $0.80, only because we bought the deep-in-the-money call in DHI the very next day, which gives us long exposure to DHI. It is only a 1×1 spread, so let’s close this trade and be done with it. If we hadn’t bought the long call, I would just stay the course.

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Tony Zhang