DailyPlay – Closing Trades (NVDA, AXP, NFLX, ALGN, V, CVS) – June 14, 2022

Closing Trades

• NVDA: 166.02% Loss: Buy to Close 1 Contract June 17, 2022 $182.5/$167.5 Put Verticals @12.73 Debit. DailyPlay Portfolio: By closing 1 of the 2 Contracts, we will be paying $1,273. We took partial profits for this trade on June 3 at a $2.57 Debit. Therefore, the average loss on this trade was 58.11% and the average cost basis to exit this trade is $7.65 debit.
• AXP: 136.00% Loss: Buy to Close 1 Contract June 24, 2022 $160/$150 Put Verticals @ $6.88 Debit. DailyPlay Portfolio: By closing 1 of the 3 Contracts, we will be paying $688. We took partial profits for this trade on June 3 at a $1.36 Debit. Therefore, the average loss on this trade was 19.70% and the average cost basis to exit this trade is $3.20 Debit.
• NFLX: 4.15% Loss: Buy to Close 1 Contract July 15, 2022 $170/$190 Put Verticals @ $12.18 Debit. DailyPlay Portfolio: By closing 1 of the 2 Contracts, we will be paying $1,218. We took partial profits for this trade on June 3 at a $4.55 Debit. Therefore, the average gain on this trade was 28.47% and the average cost basis to exit this trade is $8.37 Debit.
• ALGN: 86.40% Loss: Buy to Close 2 Contracts July 8, 2022 $265/$245 Put Verticals @ $11.65 Debit. DailyPlay Portfolio: By closing 2 of the 2 Contracts, we will be paying $2,330. 
• V: 50.00% Gain: Sell to Close 2 Contracts July 15, 2022 $210/$190 Put Verticals @ $12.08  Credit. DailyPlay Portfolio: By closing 2 of the 4 Contracts, we will be receiving $2,416. 
• CVS: 151.14% Gain: Sell to Close 4 Contracts June 17, 2022 $95/$85 Put Verticals @ $4.14 Credit. DailyPlay Portfolio: By closing 4 of the 7 Contracts, we will be receiving $1,656

Investment Rationale

With the severe decline we’ve seen the past three trading days – along with technical patterns suggesting more downside is likely coming before all is said and done – I want to clean up the bullish trades we have on by exiting them today. This includes remaining short put spreads in NVDA; AXP; ALGN; and NFLX, and you can choose whether to do them in the morning, midday, or towards the close.

ORCL reported after the close yesterday and beat, and in after-hours trading it was up some 10%, putting it back to near the $70 level. With our short $72.5/$67.50 expiring on Friday this week, we’ll take advantage of the hopeful large move up and exit this today, too.

On the flip side, we are long V July 15 $210/$190 put spreads. We have a nice profit on that and will exit 2 of the 4 contracts today.

We are also long a CVS June 17th $95/$85 put spread expiring in 4 days. With the stock trading at near $91, we’ll take half off today, too.

Lastly, we are short the June 24th ARKK $41/$39 spread, which served us well till the past three days. The stock is at $36.58 with 10 more trading days to go till expiration. I’m inclined to be a holder of this, but I’d understand if you wanted to exit it, too.

If anything, the last few days have shown me that we likely really need to play short-dated options while the volatility is elevated and bearish action prevalent. Figuring out where the market will be one month out is pretty difficult, so I’m more inclined to keep ideas now to something closer to the two-week range.