DailyPlay – Portfolio Review – August 11, 2025
DailyPlay Portfolio Review Our Trades GOOGL – 25 DTE...
Read MoreStrategy: Long Put Vertical Spread
Direction: Bearish
Details: Buy to Open 34 Contracts May 26th $31/$29 Put Vertical Spreads @ $0.58 Debit per contract.
Total Risk: This trade has a max risk of $1,972 (34 Contracts x $58) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $58 to select the # contracts for your portfolio.
Counter Trend Signal: This stock is bullish and is expected to pull back as it has reached a point of exhaustion.
1M/6M Trends: Bullish/Bullish
Technical Score: 8/10
OptionsPlay Score: 141
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 Tuesday’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
Investors didn’t take kindly to First Republic’s news on Tuesday, and along with some earnings disappointments before the open, the SPX sold off 65 points (1.58%) to close at 4072, the lowest close since March 30th. With the general theme I’ve espoused of “Do what worked in the past (until it doesn’t)”, we’ve substantially lightened overall long exposure over the past two weeks, as the significant SPX resistance at 4148/4155 continues to cap the rallies.
However, after the close we got some big tech earnings beats, so as I write this Tuesday evening, I see S&P futures up ~ 18 points from where they closed at 5pm.
There is still much to move the market over the balance of the week, with both economic releases and lots more earnings reports. As I mentioned earlier this week, yesterday through tomorrow has 35% of all SPX companies reporting, so even if we think we know which way the market is going to move based upon where it is now, the reality is that we still could see a rally that hurdles 4155 by Friday. At this point, it’s all data dependent because there really isn’t an overall trend to lean on.
A few portfolio notes/changes:
GILD – Daily
Finally, here’s a new bearish play in one of the big Dow Transport names: CSX. For the 4th time since last August, it has stalled right at either the bottom or top of its weekly cloud. It did it again a week ago, so let’s look to buy the May 26th $31/$29 put spread. Yesterday it went out at 57.5 cents, or about 29% of its strike differential. Any Friday close above $32.5 will stop us out of this trade.
CSX – Weekly
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