DailyPlay – Opening Trade (PINS) & Closing Trade (TGT, NEM) – August 05, 2025
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Read MoreStrategy: Long Put Vertical Spread
Direction: Bearish
Details: Buy to Open 13 Contracts Jan 19th $38/$34 Put Vertical Spreads @ $1.53 Debit per contract.
Total Risk: This trade has a max risk of $1,989 (13 Contracts x $153 based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $153 to select the # contracts for your portfolio.
Trend Continuation Signal: This is a bearish trade on a stock that is bearish and expected to continue lower.
1M/6M Trends: Bearish/Mildly Bearish
Relative Strength: 9/10
OptionsPlay Score: 119
Stop Loss: @ $0.77 Credit. (50% loss on premium paid)
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.
Investment Rationale
As we approach the end of the trading week, our $HAL position reflects an unrealized gain of 24%. With oil on the decline, the Energy sector has been the weakest sector in the S&P 500. $HAL broke below the $38 major support level yesterday which has confirmed our bearish thesis. As we expect a continuation lower, we will be adding another 2% to this position (Buy 13 Jan 19, $38/$34 Put Verticals @ $1.53 Debit). The next support zone for $HAL sits at $34.
Equities continue to push higher with the $SPX now at the $4500 level. Given the extent of the rally in the last 2 weeks, we view equities as slightly overbought in the short term and still expect a quick pullback in the next few days. However, the risk-on rally has seen a strong shift in price structure with a breakout above the $4400 previous swing high. Despite beating on revenue and EPS expectations, Walmart ($WMT) experienced a 8% decline yesterday due to poor forecasts regarding consumer spending.
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