DailyPlay – Closing Trade (USO) Trade Adjustment (INTC) – September 8, 2022

Closing Trade

• USO – 89.57% Loss: Sell to Close 8 Contracts Sept 16, 2022 $75/$81 Call Verticals @ $0.24 Credit. DailyPlay Portfolio: By Closing all 8 Contracts, we will be receiving $192. 

Trade Adjustment

• INTC – 64.19% Unrealized Loss. Roll the Sept 9 $38 Call to the Oct $35 Call @ $0.24 Credit
• Buy to close Sep 9, $38 Call @ $0.01 Debit (originally opened at $0.45 credit)
• Sell to open Oct 21, $35 Call @ $0.25 Credit
• This results in a reduced premium for the INTC Long Call Diagonal Trade to $2.86 ($3.10 – $0.24)

Investment Rationale

Bulls managed to muster the most strength that we’ve seen in a few weeks yesterday. We closed just above the top of the Daily Cloud and we will see bulls can push higher today into the 4050-4100 resistance area (conversion and base line), otherwise, we could see a retest of the 3900 support (cloud bottom) and a potential break towards 3700. Any further strength would be an opportunity to seek additional bearish exposure. Until then we will take this opportunity to reduce some of our long exposure in USO on weakening demand outlook and adjusting our INTC diagonal as we approach the expiration of the short strike.

Close the Full USO Position @ $0.24 Debit

Roll the Sept 9 $38 Call to the Oct $35 Call @ $0.24 Credit

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