DailyPlay – Opening Trade (INDA) Closing Trade (INDA) – October 11, 2023

Closing Trade

INDA – 14.27% Loss: Sell to Close 20 Contracts (or 100% of your Contracts) Oct 20th $43 Calls @ $1.73 Credit. DailyPlay Portfolio: By Closing all 20 Contracts, we will receive $3.468.

INDA Bullish Opening Trade Signal

View INDA Trade

Strategy Details

Strategy: Long Call

Direction: Bullish

Details: Buy to Open 20 Contracts Dec 15th $44 Calls @ $1.63 Debit per contract.

Total Risk: This trade has a max risk of $3,260 (20 Contracts x $163) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $163 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a Bullish trade on a stock that found support and is expected to bounce higher.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 84

Stop Loss: @ $0.75 Credit (50% loss of premium paid.)

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

Investment Rationale

As our INDA position is approaches 10 days until expiration, we still believe strongly in this Macro theme of India’s outperform in Asian markets. With this it is time to roll up and out to the Dec $44 strike call. For those who are new to placing a roll order, we are effectively closing the Oct $43 Calls ($.173 Credit) that we own and buying the Dec $44 Calls ($1.63 Debit) for a net credit for $0.10. For the 20 contracts that we own this locks in a $200 credit while extending our time horizon to Dec 2023. Since this is a position that we added to after it broke out above $44, we will maintain 20 contracts of the Dec $44 Calls for an effective net price of $1.53 Debit. We will set a stop loss on the calls at around 50% of the premium paid @ $0.75 Credit.