DailyPlay – Opening Trade (HLT) Closing Trade (WBA) – June 28, 2023

Closing Trade

• WBA – 85.30% Loss: Sell to Close 17 Contracts (or 100% of your Contracts) July 21st $30/$35 Call Vertical Spreads @ $0.28 Credit. DailyPlay Portfolio: By Closing all 17 Contracts, we will receive $476. We opened 12 Contracts of his trade @ $1.58 Debit and another 7 Contracts @ $2.79 Debit, resulting in an average cost of $266.41 per contract. The average loss per contract is therefore $238.41.

HLT Bullish Opening Trade Signal

View HLT Trade

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 6 Contracts August 18th $145/$160 Call Vertical Spreads @ $3.37 Debit per contract.

Total Risk: This trade has a max risk of $2,022 (6 Contracts x $337) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $337 to select the # shares for your portfolio.

Trend Continuation Signal: This stock has been neutral and is expected to trade higher over the duration of this trade.

1M/6M Trends: Neutral/Neutral

Technical Score: 7/10

OptionsPlay Score: 92

Stop Loss: @ $1.69 Credit (50% loss).

Entering the Trade

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

Our bullish trade idea today is Hilton Worldwide Holdings ($HLT). $HLT has experienced a bullish trend which started in July 2022. However, over the last few months price has started to squeeze with higher lows and lower highs being formed. With the longer-term trend being bullish, a squeeze could indicate a potential breakout higher is on the cards in the near future. Therefore, the trade structure we will be using is buying a slightly OTM call vertical to take advantage of a strong bullish move. The August 18 $145/$160 only costs $3.37 (22% of the vertical width) which provides an excellent risk/reward long opportunity. The next key resistance levels are at $150 and $160 respectively which will also act as price targets for $HLT.