DailyPlay – Closing Trade (DIS) – August 11, 2023

Closing Trade

• DIS – 38.02% Loss: Buy to Close 4 Contracts (or 100% of your remaining Contracts) Sept 8th $89/$96 Call Vertical Spreads @ $3.34 Debit. DailyPlay Portfolio: By Closing all 4 Contracts, we will be paying $.1,336. We opened this trade @ $2.50 Credit which therefore gives us a loss of $84 per contract.

Investment Rationale

Now that over 90% of S&P 500 stocks have reported earnings, we saw above average EPS beats, but below average Revenue beats. More importantly, stocks that beat move on average of -0.5% and stocks that missed move on average of -2.4%, which is quite unusual. As we review our earnings plays, I no longer believe that DIS is a position worth holding onto, despite it currently only shows a small loss and has not triggered our stop loss levels. I believe in this type of environment, it is better to cut overall portfolio exposure when currently we have two thirds of our open positions that have short exposure. Close out all 4 Contracts of DIS Sept 8 $89/96 Call Verticals.