DailyPlay – Portfolio Review & Closing Trade (IWM) – February 18, 2025

Closing Trade

• IWM – 66% loss: Sell to Close 2 Contracts (or 100% of your Contracts) Feb 21 $225 Straddles @ $3.72 Credit. DailyPlay Portfolio:  By Closing both Contracts, we will receive $744. We initially opened these Contracts on Jan 17 @ $10.96 Debit. Our loss, therefore, is $724 per contract.

DailyPlay Portfolio Review

Our Trades

AMGN – 58 DTE

Bullish Long Call – Amgen Inc. (AMGN) –  The stock price has been volatile since the recent earnings announcement, the position is profitable and we plan to stay the course for now.

DXCM – 3 DTE

Bullish Long Calls – DexCom, Inc. (DXCM) – We recently sold an option to convert our long call position in DXCM into a bull call spread ahead of earnings. The company announced earnings last week, and following the report, the stock saw a price increase. After a few adjustments, our cost basis is now $1.50, and we are slightly profitable on the position. We hope the stock’s upside momentum continues from the earnings move, but with expiration approaching quickly, we plan to close the position sooner rather than later.

GOOGL – 10 DTE

Bullish Credit Spread – Alphabet Inc. (GOOGL) – The stock declined after Alphabet’s earnings call, where the company announced plans for a substantial increase in AI spending. With the position under pressure, we’ll be keeping a close watch at the start of the week.

IWM – 3 DTE

Bullish Long Straddle – We are closing this position today.

LRCX – 41 DTE

Bullish Long Call – Lam Research Corporation (LRCX) – We recently established this position and plan to stay the course for now.

NEM – 10 DTE

Bullish Long Call – Newmont Corporation (NEM) – We have a profit on this position and plan to stay the course for now. The company is set to report earnings on Thursday, February 20th, after market close. Implied volatility is creeping up, which benefits our long call position. We now have to decide whether to close before earnings to avoid the event risk or convert the position into a long call spread and hold through the report.

PEP – 38 DTE

Bullish Credit Spread – PepsiCo, Inc. (PEP) – This position was recently established, and with no significant changes, we plan to hold steady for now.

PWR – 58 DTE

Bullish Debit Spread – Quanta Services, Inc. (PWR) – With the position newly established and little movement since, we see no reason to adjust our approach at this time. The company is set to report earnings on Thursday, February 20, 2025, before the market opens.