DailyPlay – Closing Trade (QQQ) Partial Closing Trade (TLT) – March 31, 2023

Closing Trade

• QQQ – 64% Loss: Buy to Close 8 Contracts (or 100% of your Contracts) April 14th $309/$315 Call Vertical Spreads @ $4.10 Debit. DailyPlay Portfolio: By Closing all 8 Contracts, we will be paying $3,280.

Partial Closing Trade

• TLT – 70.82% Loss: Sell to Close 2 Contracts (or 50% of your remaining Contracts) April 6th $104.50/$114 Call Vertical Spreads @ $0.89 Credit. DailyPlay Portfolio: By Closing 2 of the remaining 4 Contracts, we will receive $178.

Investment Rationale

Stocks head into today’s end of week/month/quarter session with bulls controlling recent action, as banking crisis fears have dramatically decreased, and the bounce from the lower end of the 2023 trading range keeps bidders using minor weakness to buy more stock – whether new purchases or the covering of short positions. In fact, yesterday’s price action clinched a new bullish Propulsion Momentum signal for the SPX, with it targeting an upmove to the 4150 area – which unrelatedly happens to be the top of the trading range, anyway. I look for today and Monday to have some upped volatility – not only from today’s weekly option expiration, but also from new monthly and quarterly re-allocations.

Late yesterday the QQQ was trading north of the $315.25 level – with my previously having stated that a close above that price was our exit signal to our bearish QQQ short call spread. We are out and lost 64%.

I also want to lighten our long TLT trade, as we only have until a week from today for this long call spread to work. Take off 2 of the remaining 4 spreads today.

I have just spent some 90 minutes looking for a new idea for today, and I don’t find anything that I want to do that also has the options priced fairly. As such, I won’t add a position today, and we’ll see how things pan out over the weekend for new ideas come Monday.