DailyPlay - Opening Trade (PYPL) Closing Trade (DHI) - July 12, 2024

DailyPlay – Opening Trade (PYPL) Closing Trade (DHI) – July 12, 2024

By Prakash Vijayanath

July 12, 2024

Closing Trade

DHI – 55.82% loss: Sell to Close 13 Contracts (or 100% of your Contracts) August 16st $140/$130 Put Vertical Spreads @ $1.65 Credit. DailyPlay Portfolio: By Closing all 13 Contracts, we will receive $2,145. We opened 8 Contracts on June 25 @ $3.10 Debit and then another 7 Contracts on July 2 @ $4.75 Debit. The average loss, therefore, is $282.

Additional PYPL Bullish Opening Trade Signal

Investment Rationale

As PYPL bounced off support at $58 our bullish thesis has been confirmed. With price moving over the $60 mark we expect to see an increase in momentum towards resistance at $68 where we will keep a close eye on this trade and its price action.

We are adding another 2% exposure to the PYPL trade and therefore opening 8 more Contracts using the same strike prices and expiry date as on June 21.

PYPL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 8 Contracts August 2nd $60/$56 Put Vertical Spreads @ $1.58 Credit per Contract.

Total Risk: This trade has a max risk of $1,936 (8 Contracts x $242) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $242 to select the # contracts for your portfolio.

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

1M/6M Trends: Neutral /Bearish

Relative Strength: 3/10

OptionsPlay Score: 93

Stop Loss: @ $3.16 Debit. (100% loss to the value of premium received)

View PYPL Trade

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 Thursday’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.