DailyPlay – Portfolio Review – June 7, 2024

DailyPlay Portfolio Review

Investment Rationale

As traders await the Jobs numbers this morning, equities are hovering just around all-time highs. We expect a bad news is good news type event where any weakness in job numbers would imply more room for the Fed to cut rates, providing a headwind for equities. We are taking a pause from adding additional exposure in our DailyPlay portfolio until we have more clarity around these economic numbers. 

Our Trades

ADBE – 42 DTE

Bullish Credit Spread – We’re set up for a breakout above $460 going into earnings next week.

DHI – 28 DTE

Bearish Debit Spread – Weakness in housing continues as DHI fails to break higher and potentially retests $140 support. 

HD – 70 DTE

Bearish Debit Spread – Just sitting above the $330 support level that we are targeting a break below.

KR – 28 DTE

Bearish Debit Spread – Weakness has continued and we are targeting the $50.50 gap fill as our initial downside target.

NKE – 14 DTE

Bullish Debit Spread – Bottoming formation is looking more constructive but yet to break out above $96.

RACE – 42 DTE

Bearish Debit Spread – Continues to remain rangebound, but a break above $423 would invalidate our thesis and require closing out.