DailyPlay – Partial Closing Trade (BSX) – April 19, 2023

Partial Closing Trade

• BSX – 146.62% Gain: Sell to Close 1 Contract (or 50% of your remaining Contracts) April 21st $48 Calls @ $3.65 Credit. DailyPlay Portfolio: By Closing 1 of the remaining 2 Contracts, we will receive $365.

Investment Rationale

Yesterday saw all four major US stock indexes with very minor gains or losses.  Notably, however, was that the SPX closed at 4155 – the level of the top of the weekly cloud. Three more trading days in the week: Will it be able to close above it or not? (And if it’s not materially above it, then we’d really need see how next week traded to see if it is a real upside breakout or not.)

Today is the weekly crude oil inventory number at 10:30am ET. If you have any oil-related names, you need to know that this weekly report can and usually does easily move them. For us, we still have on two long USO $71/$77 call spreads (as the remnants of what was originally a long condor spread). We are up 36% on these. If the bid/offer spread comes down to our only being up 25% on them, I want you to remove one of two spreads (and not wait for breakeven as I had suggested yesterday).

USO – Daily

Let’s also take off one of two long BSX $48 calls. We’re up 147% on these and they expire Friday. (We’ll take the other one off tomorrow.)