DailyPlay – Portfolio Review – August 28, 2024

DailyPlay Portfolio Review

Investment Rationale

With NVDA’s earnings due after the close today, there’s significant anticipation around whether the demand for AI-related hardware remains robust. We expect this report to have a significant impact on the overall direction of the market. NVDA has been at the forefront of the AI-driven market rally over the past 18 months, fueled by its leading position GPUs, essential for AI computation. However, as the market becomes increasingly sensitive to the enormous Capex required to sustain this growth, investors are seeking more clarity on when these investments will translate into substantial revenue. 

Our Trades

AMAT – 37 DTE

Bearish Credit Spread – AMAT broke below the $200 level which solidifies our bearish thesis on this trade.

CSCO – 51 DTE

Bullish Debit Spread – As CSCO is trading above the $50 mark, we expect to see the next target to be between $52.50 and $54.

ETN – 23 DTE

Bearish Credit Spread – Recent rejection off the $300 resistance is a good confirmation of our bearish thesis on this trade and further downside is expected to the $275 support level. 

LULU – 30 DTE

Bullish Credit Spread – LULU continues to grind higher with the next target of $295 and $320 to the upside. 

MAR – 37 DTE

Bearish Credit Spread – Continues to trade around an area of resistance of $225 from where a break lower is expected with the first downside target at $215.

PYPL – 51 DTE

Bullish Debit Spread –  Continues to consolidate above the $70 support level which supports our bullish thesis. 

SHOP – 30 DTE

Bullish Credit Spread –  Breakout above $70 remains constructive for our bullish thesis and our upside target remains at $80.