DailyPlay – Closing Trades (ORCL, NOC) – February 28, 2024

Closing Trades

• ORCL – 25.90% Loss: Sell to Close 4 Contracts (or 100% of your Contracts) March 15th $110/$120 Call Vertical Spreads @ $3.72 Credit per contract. DailyPlay Portfolio: By selling all 4 Contracts, we will receive $1,488. We initially opened these 4 Contracts on Jan 24 @ $5.02 Debit. Our average loss, therefore, is $130 per Contract. 
• NOC – 38.78% Gain: Sell to Close 6 Contracts (or 100% of your Contracts) March 22nd $450/$475 Call Vertical Spreads @ $12.62 Credit per contract. DailyPlay Portfolio: By selling all 6 Contracts, we will receive $7,572. We initially opened 3 Contracts on Feb 5 @ $7.67 Debit, 2 Contracts on Feb 8 @ $10.45 Debit, and another 1 Contract on Feb 23 @ $10.50 Debit. Our average gain, therefore, is $355 per Contract. 

Investment Rationale

As equity valuations continue to stretch and market internals show a deterioration of market breadth, we added a portfolio protection put on the DailyPlay portfolio yesterday. I now believe that it is time to reduce some of our bullish exposure in the markets by locking in gains on profitable trades and closing out small losers at this time. The metrics are starting to skew against our directional view in NOC and ORCL. 

ORCL – Oracle is approaching expiration and we discussed closing out this trade during our Monday Morning outlook session and now is a good time to do so. 

NOC – The momentum on NOC is slowing down with only 24 days to expiration, this is one that I believe we should take profits on and potentially reenter at a better price in the future as I still believe in the longer-term thesis of this trade.