DailyPlay – Closing Trade (BROS) Partial Closing Trade (SPY) – April 27, 2023

Closing Trade

• BROS – 87.18% Gain: Buy to Close 1 Contract (or 100% of your remaining Contracts) April 28th $30/$28 Put Vertical Spread @ $0.10 Debit. DailyPlay Portfolio: By Closing the last Contract, we will be paying $10. We took partial profit when we closed 1 Contract on April 25 @ $0.10 Debit, on April 17 when we closed 2 Contracts @ $0.28 Debit, on April 13 when we closed 5 Contracts @ $0.30 Debit, on April 12 when we closed 3 Contracts @ $0.28 Debit and on April 4 when we closed 4 Contracts @ $0.48 Debit. Our average cost basis to exit this trade is therefore $0.31 Debit and our average gain on this trade is 59.78%.

Partial Closing Trade

• SPY – 64.94% Gain: Sell to Close 2 Contracts (or 1/3 of your Contracts) May 12th $411/$395 Put Vertical Spreads @ $5.74 Credit. DailyPlay Portfolio: By Closing 2 of the 6 Contracts, we will receive $1,148.

Investment Rationale

Yesterday was an interesting session, as several key markets turned around from how they started the day (some then even flipped the flips around). To witness, the SPX gapped higher but closed down almost 40 bps. The TNX opened a few bps. higher; then sold off to take out yesterday’s low; and then rallied to close up above their open. Bitcoin futures opened about $700 higher; then significantly rallied to a gain of as much as $2400; but the settled up only $300. That’s some funky trading.

Futures are decently higher after earnings reports. Today there’s still a slew of earnings coming out both before the open and after the close, including Amazon’s. Things will quiet down a bit tomorrow after several of the biggest tech names having reported.

Today we’ll take off our last BROS short puts spread. It’s up 87% and we basically got long at the bottom of the stock’s move, and have scaled out since.

Yesterday, we also sold out of half of our long GILD call spread and took a quick loss on that partial exit. Wednesday’s low came right at its weekly Base Line, so perhaps it can bounce from here and continue upward as I had expected it to.

Our SPY put trade is up ~65%. Let’s take 2 of 6 off today.

EBAY reported yesterday after the close; the stock is trading up about 2.25% this morning. IF going into today’s close the stock is above its bullish Propulsion Momentum level of $44.21, we’ll then sell a June 2nd $44/$41 put spread. It went out yesterday at $1.19, or 40% of the strike differential.

EBAY – Daily