DailyPlay Updates (DIS, CC, MTCH, GE, QQQ) – April 13, 2022

Partial Closing Trades

• MTCH: 103.17% Gain: Sell to close May 20, 2022 $105/$95 Put Vertical @ $6.40 Credit. We will remove one-half of the May 20th $105/$95 put spread we are long, as the price has moved beneath the hedge (i.e., lower) strike price, having already yielded us just over a 100% return on premium outlaid since we put this on April 1. Yesterday closed at $94.13 mid-price.   

• CC: 13.73% Loss: Sell to close May 6, 2022 $32/$29 Put Vertical @ $0.60 Credit.  We have a bearish position on this with a long May 6th $32/$29 put spread.  Price is only a little above where we put this trade on, and it just yesterday rejected its +13’s Risk Level, but I generally like to see trades turn profitable fairly quickly, and this one hasn’t in the two weeks or so since we entered.  So, we will exit half today (and the balance any day that now closes above $33.32).

Closing Trades

• QQQ: 88.19% Gain: Sell to close May 20, 2022 $362/$350 Put Vertical @ $7.81 Credit. We closed half this position on April 7 at a $5.84 credit. Therefore, the average gain on this trade was 60.34% and the average cost basis to exit this trade is $6.83 credit.

• GE: 55.21% Gain: Buy to close Apr 29, 2022 $97/$95 Call Vertical @ $0.43 Debit. We took partial profits for this trade on April 7 at a $0.42  debit. Therefore, the average gain on this trade was 55.73% and the average cost basis to exit this trade is $0.43 debit. Given the recent low against both the TDST line (red) and horizontal support level (dark purple), we will close this trade. 

DIS Bullish Opening Trade Signal

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy May 6 $139/$131 Call Vertical @ $2.80 Debit

Counter Trend Signal: This is a bullish strategy on a stock or ETF that is experiencing a bearish trend.

1M/6M Trends: Bearish/Bearish

Technical Score: 3/10

OptionsPlay Score: 104

View DIS Trade

Entering the Trade

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

Investment Rationale

This is the third time down to what had been the bottom of a gap higher made last November. Each of the prior two lows into the gap bottomed on a Setup -9 count, and now we see a third one PLUS a Sequential -13 signal (finally finished from the first of the three -9 counts). This would be a perfect place for DIS to again stage a trading rally from. With earnings coming out on May 11th, we’ll stick to a short-dated option to play what may come along with a market bounce, too. Based upon Tuesday’s closing mid prices, our purchase will lay out about 35% of the strike differential — very much in line with call spreads we often enter with the OTM strike bearing an ~25 delta.