DailyPlay Taking Profits – BAC, DFS – January 11th, 2022

Closing Trades

• BAC – 51% Gain: Long Jan 21, 2022/Apr 14, 2022 45/47 Call Diagonals @ $2.80 Credit
• DFS – 78% Loss: Short Feb 18, 2022 115/125 Call Verticals @ $7.30 Debit

DailyPlay Positions Outlook

Equities continue to decline as markets await CPI data releasing tomorrow. This will likely provide more clarity as to how aggressive the Fed will be regarding rate hikes and policy tapering. Despite the recovery late into yesterday’s session, equities remain on the backfoot and a shift towards risk-off names continues. We take this opportunity to close out our DFS position before the 100% stop loss as our technical thesis has become invalidated with prices rallying above $120 with strong momentum. We will also be taking profits early on the BAC position which is a call diagonal trade. This is due to the short strike being ITM with very few days to expiration. Rolling the short strike would result in an increased cost basis for the overall trade which is why we are opting to close the position for a 51% profit instead. 

Prakash Vijayanath

Analyst at OptionsPlay