Closing Trade

• BMY – 51.48% Loss: Sell to Close 10 Contracts (or 100% of your Contracts) May 17th $52.50/$57.50 Call Vertical Spreads @ $1.15 Credit. DailyPlay Portfolio: By Closing all 10 Contracts, we will receive $1,150. We initially opened these 10 Contracts on March 11 @ $2.05 Debit. Our average loss, therefore, is $90 per contract, translating to less than 1% of our total Portfolio.

Investment Rationale

Despite a breakout above $53 on strong volume, BMY has pulled back into its trading range and we have to accept that the timing on the trade just didn’t work out, we’re going to close out this trade and focus on managing our winners with GOOGL and FDX. 

FDX Bullish Opening Trade Signal

Investment Rationale

FDX reports earnings after the close today and presents an opportunity to add long exposure going into the event. With recent shipping outlooks improving across the board, FDX’s recent underperformance provides a rare opportunity to add FDX to your portfolio before the event. Options provide us the ability to capture potential upside with limited risk. 

Technical Analysis

FDX has traded between $235 and $250 after breaking down on last quarter’s disappointing earnings. But over the past few days there are signs that the consolidation range is starting to breakout higher with decent volume. Couple this with relative outperformance to the overall market, sets up for a potential breakout confirmation with earnings as a catalyst after the close today. 

FDX – Daily

Fundamental Analysis

DX trades at only 11x forward earnings while analysts expect about 11% EPS growth for next year. That is a fair bit higher than the rest of the market despite trading at a 50% discount to the S&P 500. If we hear a positive outlook for 2024 on earnings tomorrow, that could unlock significant value for investors. 

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 Contracts April 19th $260/$275 Call Vertical Spreads @ $5.93 Debit.

Total Risk: This trade has a max risk of $1,779(3 Contracts x $593) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $593 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that recently broke higher from an area of support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 6/10

OptionsPlay Score: 99

Stop Loss: @ $2.97 Credit. (50% loss of premium paid)

View FDX Trade

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. 

View FDX Trade

TLT Bearish Opening Trade Signal

Investment Rationale

While the market expects no changes to interest rates during the FOMC meeting today, investors are paying attention to the updated dot plot. With last week’s hotter-than-inflation print, rising commodity prices, shipping disruptions, and a strong labor market, will the median dot plot reflect any changes? In my opinion, there is the risk that the median dot plot can shift to expecting only 2 rate cuts this year instead of the 3 the bond markets are pricing in. While this may not have a significant impact on equities, bonds will likely sell off further on such news. I propose putting on a hedge using TLT against rising rates going into today’s meeting. 

Technical Analysis

TLT has traded largely within a range of $92 and $98 and it’s been testing the $92 support level over the past few days. A catalyst such as a change in the median dot plot, or rhetoric from Chair Powell could send bonds lower. Putting on a hedge here would protect against a breakdown below these levels. 

TLT – Daily

Trade Details

Strategy Details

Strategy: Long Put

Direction: Bearish Put

Details: Buy to Open 10 Contracts May 17th $93 Puts @ $1.97 Debit.

Total Risk: This trade has a max risk of $1,970 (10 Contracts x $197) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $197 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is in a bearish trend.

1M/6M Trends: Bearish/ Mildly Bearish

Relative Strength: 4/10

OptionsPlay Score: 73

Stop Loss: @ $0.99 Credit. (50% loss of premium paid)

View TLT Trade

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. 

View TLT Trade

Closing Trade

• AAPL – 31.15% Gain: Sell to Close 10 Contracts (or 100% of your Contracts) April 5th $170/$180 Call Vertical Spreads @ $4.69 Credit. DailyPlay Portfolio: By Closing all 10 Contracts, we will receive $4,690. We initially opened 6 Contracts on March 6 @ $3.28 Debit, and then 4 Contracts on March 13 @ $4.01 Debit. The average gain, therefore, is $112 per contract with a total gain of $1,120 on our Portfolio.

Investment Rationale

After a strong open on the back of AI rumors, price action was extremely weak all session and closed at the lows. This type of price action is not favorable to our long position with positive time decay. As we approach the last 2 week before expiration I believe now is time to close out our AAPL position today. 

DailyPlay Portfolio Review

Our Trades

AAPL – 18 DTE

Bullish Debit Spread. With 18 days to expiration, and rumors over the weekend that AAPL and GOOGL will team up to provide AI services on Apple devices, we are going to hold this close to expiration. 

BMY – 60 DTE

Bullish Debit Spread – Our key level is $53, if this level fails over the next few trading days, we will likely look to cut our position. 

DEO – 32 DTE

Bullish Debit Spread – As we look for $155 to the upside, the key level that must hold is $147. If we break below $147 it’s time to cut the position and focus on winners.

GOOGL – 18 DTE

Bullish Debit Spread – Rumors over the weekend that AAPL may use their Gemini AI services boosted the stock 3% pre-market and we added to this position last week. Look for a potential full profits in the next 18 days. 

Closing Trade

• C – 64.69% Gain: Sell to Close 11 Contracts (or 100% of your Contracts) April 19th $52.50 Calls @ $5.33 Credit. DailyPlay Portfolio: By Closing all 11 Contracts, we will receive $5,863. We initially opened 7 Contracts on February 14 @ $2.80 Debit, and then 4 Contracts on February 16 @ $4.00 Debit. Our average gain, therefore, is $209 per contract. 

Investment Rationale

Banking stocks are starting to show signs of underperformance as 10-year yields rise to 4.3% and C’s momentum continues to deteriorate as it prints new relative highs. This increases the risk of a larger pullback and I believe it is time to take profits on this C trade.  

C – Daily

GOOGL Bullish Opening Trade Signal

Investment Rationale

With equity markets continuing to march higher, our GOOGL position has continued to work well. We are going to take this opportunity to add another 2% of our portfolio’s value in exposure to this trade. This is following our DailyPlay methodology to help you become a profitable trader by focusing on turning small wins into potentially much larger winners. We achieve this by adding exposure when it turns out that our market thesis is correct.  

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 Contracts April 5th $135/$150 Call Vertical Spreads @ $6.07 Debit.

Total Risk: This trade has a max risk of $1,821 (2 Contracts x $607) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $607 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that has recently bounced higher off support.

1M/6M Trends: Neutral/Neutral

Relative Strength: 3/10

OptionsPlay Score: 96

Stop Loss: @ $3.04 Credit. (50% loss of premium paid)

View GOOGL Trade

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. 

View GOOGL Trade

Closing Trade

• META – 11.35% Loss: Sell to Close 4 Contracts (or 100% of your Contracts) March 28th $495/$480 Put Vertical Spreads @ $5.47 Credit. DailyPlay Portfolio: By Closing all 4 Contracts, we will receive $2,188. We initially opened these 4 Contracts on March 5 @ $6.17 Debit. Our average loss, therefore, is $70 per contract. 

AAPL Bullish Opening Trade Signal

Investment Rationale

With only 15 days to expiration and the trade just sitting at breakeven, let’s look to close out META, and the markets shrug off the inflation print and continue to march on higher. Let’s focus our attention on our winning trades such as AAPL and GOOGL and manage those to be large winners. 

AAPL has completed a bounce off its $170 support level and trades at a relative discount to its historical valuation, making our $180 upside target now within reach. I’m taking this opportunity to add another 2% of our portfolio’s exposure to this trade, which is another 4 contracts based on our hypothetical $100,000 sized portfolio. This is following our methodology to help you become a profitable trader by focusing on turning a small win into a potentially much larger winner. We achieve this by adding exposure when we’re correct (AAPL) and reducing exposure where we are incorrect in our market thesis (META). 

AAPL – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 Contracts April 5th $170/$180 Call Vertical Spreads @ $4.58 Debit.

Total Risk: This trade has a max risk of $1,832 (4 Contracts x $458) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $458 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that has recently bounced higher off support.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 97

Stop Loss: @ $2.29 Credit. (50% loss of premium paid)

View AAPL Trade

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. 

View AAPL Trade

DailyPlay Portfolio Review

Investment Rationale

Our current open trades are in good shape with a good mixture of early positions. We are going to hold off on adding further exposure in the portfolio today and provide an overview of our outstanding positions. 

Our Trades

AAPL – 24 days DTE

Bullish Debit Spread. Our thesis that $170 was a bottom is holding so far, looking for a continuation higher toward our $180 upside target. 

BMY – 66 days DTE

Bullish Debit Spread. A position that we entered yesterday after BMY completing a bottom formation and broke out above its $53 resistance level. 

C – 38 days DTE

Bullish Calls. Holding above $57 resistance level so far and we are looking for a push higher towards our $65 target before taking profits. 

DEO – 38 days DTE

Bullish Debit Spread. Our thesis that $145 support would hold onto its $155 target is working so far, and will continue to hold onto position. 

GOOGL – 24 days DTE

Bullish Debit Spread. Has broken back above our initial $135 support area after breaking lower, we will look for opportunities to take profits as this trade grinds back to breakevens as we approach 24 DTE. 

META – 16 days DTE

Bearish Debit Spread. Big move yesterday has pushed our trade back into the green and we’re just off the $480 downside target. Looking to hold this towards expiration for take profit opportunities. 

BMY Bullish Opening Trade Signal

Investment Rationale

We took a stab at BMY at its very lows in Nov of last year and now that we have the confirmed bottom, it’s time to step back in. After underperforming for nearly a decade, BMY’s drug pipeline and fundamentals are starting to align for investors again. On the back of multiple FDA approvals and acquisitions, BMY is starting to show that it can generate growth again. 

Technical Analysis

BMY has traded between $50 and $75 for nearly 10 years and recently tested these lows where we took an initial position in Nov. Now that is has completed it base and broken out above its $53 resistance level, this is a lower-risk entry for further upside into the low $60’s initial target. This recent move has also been accompanied with outperformance relative to its sector and the overall market.

BMY – Daily

Fundamental Analysis

BMY trades at only 7.5x forward earnings despite flat EPS, Revenue and FCF. This is a significant discount to the market that warrants further research given the outlook for its drug pipeline. BMY has acquired multiple pharmaceutical companies with some starting to pay off with an FDA approval for their lung cancer drug Augtyro. Additionally, multiple drugs in their pipeline that have been approved this past year are starting to see strong QoQ sales growth. So, with analysts sour on BMY, I believe now is the best time to have an eye on this 136-year-old pharmaceutical company.

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 10 Contracts May 17th $52.50/$57.50 Call Vertical Spreads @ $2.05 Debit per contract.

Total Risk: This trade has a max risk of $2,050 (10 Contracts x $205) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $205 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is neutral and in a larger bullish trend.

1M/6M Trends: Bullish/Mildly Bullish

Relative Strength: 3/10

OptionsPlay Score: 110

Stop Loss: @ $1.03 Credit. (50% loss of premium paid)

View BMY Trade

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 Friday’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. 

View BMY Trade