DailyPlay – Closing Trades (BMY, LULU) & Portfolio Review – November 4, 2024

Closing Trades

• BMY – 18.80% gain: Sell to Close 5 Contracts (or 100% of your Contracts) November 15 $50 Calls @ $4.55 Credit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will receive $2,275. We initially opened these 5 Contracts on October 15 @ $3.83 Debit. Our gain on this trade, therefore, is $360.
• LULU – 27.15% gain: Sell to Close 3 Contracts (or 100% of your Contracts) Nov 15/Dec 6 $315/$320 Call Diagonals @ $12.27 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will receive $3,681. We initially opened these 3 Contracts on October 29 @ $9.65 Debit. Our gain on this trade, therefore, is $786.

DailyPlay Portfolio Review

Our Trades

BMY – 11DTE

Bullish Calls – We are closing this position today.

COST – 11 DTE

Bearish Modified Call Butterfly – We continue to hold a bearish outlook on Costco (COST) from a valuation standpoint, staying the course on the position, which is up slightly.

IBM – 11 DTE

Bearish Credit Spreads – IBM continues to indicate overbought signals, reinforcing our bearish stance. We’ll hold steady on the position, which has gained slightly.

JNJ – 25 DTE

Bullish Credit Spreads – JNJ has been volatile recently and has returned to its downside support level, which has been unfavorable for this trade, as it is also the short strike of our put vertical spread. With 26 days until expiration, we need to monitor this position closely.

LULU – 32 DTE

Bullish Call Diagonals – We are closing this position today.

SQ – 18 DTE

Bullish Debit Spread – SQ’s rapid growth suggests it could soon reach a more reasonable valuation of 19-20x forward earnings. With the company’s earnings expected on November 7th, there’s a strong chance we will hold this position through the report. We’ll stay the course on this position as the earnings date approaches.