DailyPlay – Opening Trade (AXP) – July 3, 2024

Additional AXP Bullish Opening Trade Signal

Investment Rationale

As we head into the July 4th holiday, we expect Friday to be a light trading day, despite Non-Farm payrolls coming out at 8:30AM. Our AXP position is progressing well towards our $240 target and we can add another 2% (roughly 2.5% today) of our portfolio’s exposure to this position and attempt to hit a home run with this trade. We will update you with any potential closing trades on Friday but will not be opening any new positions.

We are adding another 2% exposure to the AXP trade and therefore opening 2 more Contracts using the same strike prices and expiry date as on June 18.

AXP – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 Contracts August 16th $220/$240 Call Verticals @ $12.58 Debit per Contract.

Total Risk: This trade has a max risk of $2,516 (2 Contracts x $1,258) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $1,258 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is bouncing higher off support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 90

Stop Loss: @ $6.29 Credit (50% loss of premium)

View AXP 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 Tuesday’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 AXP Trade