DailyPlay – Closing Trade (CRWD) – October 9, 2023

Closing Trade

• CRWD – 70.51% Gain: Buy to Close 3 Contracts (or 100% of your Contracts) Nov 3rd $160/$150 Put Vertical Spreads @ $1.10 Debit. DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $330. We initially opened these 3 Contracts on Sept 27 @  $3.73 Credit. Our average gain, therefore, is $263 per contract. 

Investment Rationale

With geopolitical tensions escalated over the weekend, we are entering today with oil prices significantly higher and equities indices lower. After a strong week last week, we will see if markets have the strength to continue higher, or rollover at these important resistance levels. Given the high degree of uncertainty and volatility expected around today’s open, we are only going to reduce exposure in our portfolio. Having collected over 70% of the max profit of our credit spread on CRWD, it is time to close out this trade at a gain and maintain the current holdings in our portfolio. This week’s CPI print and FOMC minutes will likely provide an important outlook for equities and bonds going into the November FOMC meeting.