DailyPlay – Opening Trade (AXP) Closing Trade (ORCL) – June 29, 2023

Closing Trade

• ORCL – 59.25% Loss: Sell to Close 8 Contracts (or 100% of your Contracts) July 7th $111/$120 Call Vertical Spreads @ $1.96 Credit. DailyPlay Portfolio: By Closing all 8 Contracts, we will receive $1,568. We opened this trade @ $2.70 Debit and, resulting in an average cost of $270 per contract. The average loss per contract is therefore $141.50.

AXP Bullish Opening Trade Signal

View AXP Trade

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 4 Contracts August 18th $170/$185 Call Vertical Spreads @ $5.05 Debit per contract. per contract.

Total Risk: This trade has a max risk of $2,016 (4 Contracts x $504) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $504 to select the # shares for your portfolio.

Trend Continuation Signal: This stock is in a bullish trend and is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Technical Score: 8/10

OptionsPlay Score: 109

Stop Loss: @ $2.52 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 Wednesday’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

As consumers pull back with spending, they have become more selective, but travel remains one area where spending continues to rise. At the heart of this spending are with airlines and the credit card providers that benefit from this spend. American Express’s premium credit cards are the preferred card of travelers with the their Delta partnership driving nearly 1% of the US’s GDP in spending alone. AXP recently pulled back to its $165 breakout level and now provides an opportunity to buy on a pullback to an important support level. I’m looking to purchase the Aug $170/185 Call Vertical @ $5.04 Debit to play for a breakout higher. We also have been monitoring our ORCL position and it is now at risk of filling the earnings gap, so we are closing out our adjusted trade at a loss of $1,425, bringing the net gain on ORCL trade to $4,015 on the net position. 

AXP – Daily