Closing Trades (PTON, KWEB, AMAT) – October 27th, 2021

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Closing Trades

• PTON – 29% Gain: Long Dec 17, 2021 80/85/105 Call Spread Risk Reversal @ $5.50 Credit
• KWEB – 16% Loss: Long Dec 17, 2021 50/58 Call Verticals @ $2.45 Credit
• AMAT – 90% Loss: Short Nov 5, 2021 130/140 Put Verticals @ $6.53 Debit

DailyPlay Positions Outlook:

As earnings season continues, equities remain elevated with what has been a surprisingly positive Q3 for the majority of companies in the S&P 500 so far. The tech giants are set to provide an additional boost for the major indices with Alphabet and Microsoft both posting encouraging numbers. SPY and QQQ continue to grind higher with SPY pulling back slightly from session highs yesterday and the Nasdaq 100 inching closer to its previous all-time high. 

We take this opportunity to close out PTON for a 29% gain before earnings next week. KWEB failed to breakout thus invalidating our bullish thesis and will be closed for a limited loss. AMAT failed to breakout higher as well and price action remains rangebound.