DailyPlay and Closing Trades (CC, PAAS, CBI, NYCB) – March 31, 2022

Closing Trades

• PAAS: 50% Gain: Sell to close Apr 14, 2022 $26/$30 Call @ $1.66 Credit. Please note, that half of this position was closed on March 18 at $1.73 Credit. Therefore, the average closing price of the entire position is $1.70 Credit. 
• XBI: 12.8% Gain: Sell to close Apr 22, 2022 $66/$74 Put Vertical @ $2.99 Credit. Close half of this position. For example, if 10 contracts were opened for this trade, we recommend closing 5 contracts. 
• NYCB: 64.3% Loss: Sell to close Apr 14, 2022 $$11/$12 Call Vertical @ $0.15 Credit. Please note, the NYCB Jul 15, 2022 $11/$13 Call Vertical remains open. 

CC Bearish Opening Trade Signal

Strategy Details

Strategy: Put Debit Spread

Strategy Direction: Bearish

Details: Buy May 6, 2022 $32/$29 Put Vertical @ $1.02 Debit

Counter Trend Signal: This is a bearish strategy on a stock or ETF that is experiencing a bullish trend. 

1M/6M Trends: Bullish/Bullish

Technical Score: 9/10

OptionsPlay Score: 130

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View CC Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

Price bottomed on an Aggressive Combo -13 signal, and has immediately gone straight up to an opposite +13 signal that is also against its cloud; has its Lagging Line right by its cloud; is very close to its Propulsion Full Exhaustion level; and is right by the bottom area of a large gap. That’s enough theoretical resistance to have us be sellers up here. We’ll buy the May 6th $32/$29 put spread for $1.03 basis yesterday’s closing mid price.