DailyPlay – Closing Trade (MRNA) Partial Closing Trades (COIN, BYND, SPOT, GE) – February 23, 2023

Closing Trade

• MRNA – 37.15% Loss: Buy to Close 3 Contracts (or 100% of your Contracts) Feb 24th $170/$160 Put Vertical Spreads @ $6.83 Debit. DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $2,049

Partial Closing Trades

• COIN – 29.68% Loss: Buy to Close 1 Contract (or 50% of your Contracts) Mar 10th $70/$54 Put Vertical Spread @ $9.70 Debit. DailyPlay Portfolio: By Closing 1 of 2 Contracts, we will be paying $970
• BYND – 26.09% Gain: Sell to Close 5 Contracts (or 50% of your remaining Contracts) Mar 17th $17.50/$22.50 Call Vertical Spreads @ $1.16 Credit. DailyPlay Portfolio: By Closing 5 of 10 Contracts, we will receive $580.
• SPOT – 20.00% Gain: Buy to Close 3 Contracts (or 40% of your Contracts) Mar 17th $125/$130 Call Vertical Spreads @ $1.52 Debit. DailyPlay Portfolio: By Closing 3 of 7 Contracts, we will be paying $456.
• GE – 12.50% Loss: Sell to Close 6 Contracts (or 50% of your Contracts) Mar 24th $83/$77 Put Vertical Spreads @ $1.40 Credit. DailyPlay Portfolio: By Closing 6 of the 12 Contracts, we will receive $840.

Investment Rationale

A minor mixed day for equities on Tuesday as things were pretty quiet as investors await today’s FOMC minutes. At this point, the SPX is off 4.5% from its closing 2023 high of 4180, and just ½% away from my initial call for a 5% pullback, that I could potentially even see get to an almost 8% decline from that Feb. 2nd peak price. (This has been another good example of the value of fading price trends at the right place and time. Bulls have watched an almost a 200-pt. selloff with their hands tied and like deer caught in headlights.)With the FOMC announcement this afternoon, I am not going to put out a new DP idea for today. But looking at our open positions, let’s lighten up the following names to reduce either giving back profits or potentially losing more:

• MRNA: Let’s cover 3 of 3 short Feb. 24^th $170/$160 put spreads we’re down 35% on.
• COIN: Let’s cover 1 of 2 short March 2^nd $70/$54 put spreads that we’re down 21% on.
• BYND: Let’s liquidate 5 of 10 long March 17^th $17.5/$22.5 call spreads that we’re up 26% on.
• SPOT: Let’s cover 3 of 7 short March 17^th $125/$130 call spreads that we are up 20% on.
• GE: Let’s cover 6 of 12 long $82/$77 put spreads that we are down 13% on.

It’s your choice if you want to trade these before the Fed announcement at 2pm ET, or wait till after to see the effects of the news. I tend to be conservative in my trading, so I generally lighten positions before the news, but, as always, it’s up to you and your tolerance for risk.