DailyPlay – Portfolio Review & Closing Trades (BAC, BIDU) & Opening Trade (AAPL) – March 10, 2025

DailyPlay Portfolio Review

Our Trades

DAL – 38 DTE

Bearish Debit Spread – Delta Air Lines, Inc. (DAL) – We have a solid  gain in this position and might close it out soon to capture the profit.

KMI – 25 DTE

Bearish Long Put – Kinder Morgan Inc. (KMI) – We’re seeing a slight gain since establishing this position and will maintain it for now.

GLD – 25 DTE

Bullish Credit Spread – SPDR Gold Trust (GLD) – Since opening this position, there have been no significant changes, so we plan to hold for now.

V – 32 DTE

Bullish Credit Spread – Visa Inc. (V) – Visa pulled back slightly after a period of strong momentum, and we will continue to maintain our position for now.

Closing Trades

• BAC – 70% loss: Sell to Close 10 Contracts (or 100% of your Contracts) May 16 $45/$50 Call Vertical Spreads @ $0.70 Credit. DailyPlay Portfolio:  By Closing all 10 Contracts, we will be receive $700. We initially opened these 10 Contracts on March 3 @ $2.40 Credit. Our loss, therefore, is $170 per contract.
• BIDU – 54% gain: Buy to Close 5 Contracts (or 100% of your Contracts) April 4 $87/$80 Put Vertical Spreads @ $1.14 Debit. 
  DailyPlay Portfolio:  By Closing all 5 Contracts, we will be paying $570. We initially opened these 5 Contracts on Feb 19 @ $2.50 Credit. Our gain, therefore, is $1,600.

AAPL Bearish Opening Trade Signal

Investment Rationale

A couple of weeks ago, we initiated a bearish position on Apple Inc. (AAPL) using a short vertical spread, selling the Apr 4, 2025, $245/260 call vertical for a $6.20 credit. Last week, on March 6, 2025, we successfully closed this position for a profit. 

Despite AAPL’s rally this week, I reiterate my strong bearish stance. The company is grappling with issues like disappointing iPhone 16 sales, competition in augmented reality, a trade war that they will find hard to avoid. Its valuation, of 33x forward earnings compares to an industry median of 20x, suggests considerable downside risks. 

Given this outlook, I’m proposing a new bearish position using another short vertical call spread. Selling the AAPL Apr 25, 2025, $240/255 call vertical for a $7.02 credit. The maximum profit is $702 if AAPL stays below $240 at expiration, with a breakeven at $247.02 and a maximum risk of $798.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 Contracts AAPL April 25 $240/$255 Call Vertical Spreads @ $7.02 Credit per Contract.

Total Risk: This trade has a max risk of $2,394 (3 Contracts x $798) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $798 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on an stock that is expected to continue lower off recent resistance.

1M/6M Trends: Neutral/Bullish

Relative Strength: 8/10

OptionsPlay Score: 119

Stop Loss: @ $14.04 (100% loss to value of premium)

View AAPL 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 AAPL Trade