DailyPlay – Adjusting Trade (GS) & Closing Trade (FSLR, CRWD) – August 08, 2025
Closing Trade GS Bullish Trade Adjustment Signal...
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Stocks rallied sharply on Friday from AAPL’s conference call info and the surprise jobs report number and revisions. So, despite that large rally back up above SPX 4130, these numbers likely up the odds that the Fed may again raise rates in June (i.e., the economy is still too hot), though this week’s CPI and PPI numbers could confirm or ameliorate that from happening. After all, the Fed has told us that they are going to be quite data-dependent in determining if going forward they raise or pause the 10 straight rate hikes they’ve gone with.
Friday’s 1.85% rally brings the SPX right back to near the 4148/4155 area that has been the key resistance – and barring two Fridays ago close above there, last week did not confirm the breakout by closing lower on the week. So, we used strength on Friday to put on bearish trades by going long SPY June 16th puts at the 410; 411; 412; and 413 levels – one each – against selling the $385 puts on all four of them. If Friday’s big rally was an overshoot, and investors realize that rates likely stay “higher for longer”, then the market shouldn’t move to new highs again.
MCK had a big move up on Friday (3%), and is at $366 heading into earnings after the bell today. We’re now up only 9% on our short $370/$380 put spread, so let’s kick it out today before earnings.
CSX also had a decent upmove. The stock closed at $31.86 and we’re long 34 $31/$29 put spreads expiring May 26th. Though we’ve got time for this trade to work out, Friday’s rally made us down 66% on them, so we are forced to cover half of them today.
LYFT missed on earnings Friday morning and the stock got trashed. We are short the May 12th $10/$9 put spread, now down 118%. Take 5 of 20 off today, and 5 more off each day on Tues, Wed, and Thurs. However, if the stock looks like it is going to close beneath $8.60 on any day, kick the entire balance out.
LYFT – Daily
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