Partial Closing Trades

• GE: 56.25% Gain: Buy to close April 29, 2022 $95/$97 Call Vertical @ $0.42 Debit. Close half of this position. For example, if 4 contracts were opened for this trade, we recommend closing 2 contracts. 
• LOW: 22.91% Loss: Sell to close May 13, 2022 $205/$220 Call Vertical @ $3.87 Credit. Close half of this position.
• ALL: 0.91%% Gain: Buy to close May 20, 2022 $140/$145 Call Vertical @ $2.18 Debit. Close half of this position.  

Closing Trades

• DHI: 92.1% Loss: Sell to close DHI May 20, 2022 $85/$97.5 Call Vertical @ $0.35 Credit. We closed half this position on March 24 at a $4.43 credit. Therefore, the average loss on this trade was 73.8% and the average cost basis to exit this trade is $2.39 credit. 
• PYPL: 56.12%% Gain: Sell to close PYPL Apr 29, 2022 $100/$120 Call Vertical @ $10.85 Credit. We took partial profits for this trade on March 24 at a $12.62 credit. Therefore, the average gain on this trade was 68.9% and the average cost basis to exit this trade is $11.74 credit. 
• TAN: 42.77% Gain: Buy to close TAN Apr 22, 2022 $66/$74 Put Vertical @ $1.90 Debit. We took partial profits for this trade on March 30 at a $1.70 debit. Therefore, the average gain on this trade was 45.8% and the average cost basis to exit this trade is $1.80 debit. 

Taking Partial Profits

• CL:80% Gain: Sell to close April 29 $74/$78 Call Vertical @ $2.52 Credit. Close half of this position. For example, if 10 contracts were opened for this trade, we recommend closing 5 contracts.

We bought this call spread just 11 days ago, and in that time we have seen the stock move 7/8 of the way toward reaching its higher strike price, making us about 80% on our initial investment. Yesterday marked a daily Setup +9 count against its Fibonacci 38% retracement back up to the high. In this very unclear market environment, that’s more than enough reason for me to take off half of this trade. 

View LOW Trade

Taking Partial Profits

• XLU: 116% Gain: Sell to close May 20, 2022 $73/$78 Call Vertical @ $3.09 Credit. Close half of this position. For example, if 10 contracts were opened for this trade, we recommend closing 5 contracts. 

LOW Bullish Opening Trade Signal

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy May 13, 2022 $205/$220 Call Vertical @ $5.02 Debit

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

1M/6M Trends: Bearish/Bearish

Technical Score: 4/10

OptionsPlay Score: 109

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

LOW made a daily Setup -9 late last week and continues to hold that level as well as the prior bottoms from last September near $200 (the horizontal green-colored line). This is a key area of support (or the stock could fall to fill the unfilled gap from last August under $190). I’m purposely choosing the weekly May 13th expiration rather than the standard monthly May 20th one for two reasons: 1) they have $5 strike increments and the monthly doesn’t, and 2) LOW reports their quarterly earnings on May 18th (meaning that we would be paying extra for May 20th strikes to include the potential exposure the seller would have to be short into earnings). So we will look for a moderate gain this month to buy the May 13th $205 and sell the May 13th $220 against for a net debit of $5.02 based upon Monday’s closing mid prices.

View QQQ Trade

Closing Trades

• FDX: 98.9% Loss: Sell to close Apr 14, 2022 $250 Call @ $0.14 Credit. 

QQQ Bearish Opening Trade Signal

Strategy Details

Strategy: Put Debit Spread

Strategy Direction: Bearish

Details: Buy to open May 20, 2022 $362/$350 Put Vertical @ $4.15 Debit

Counter Trend Signal: This is a bearish trade on an ETF that is experiencing a bullish 1M trend. 

1M/6M Trends: Bullish/Neutral

Technical Score: 8/10

OptionsPlay Score: 137

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

Our bearish DailyPlay today is the Invesco QQQ Trust ETF that tracks the Nasdaq-100 index. On the daily chart, QQQ posted a Setup +9 count last Monday. On the weekly chart, QQQ had found support near the orange Base Line on 4 occasions in 2021. After breaking below the Base Line earlier this year, price has come back to retest the Base Line where it got rejected last week. This provides an excellent low-risk short opportunity for QQQ. 

View MTCH Trade

Strategy Details

Strategy: Put Debit Spread

Strategy Direction: Bearish

Details: Buy to Open MTCH May 20, 2022 $95/$105 Put Vertical @ $3.15 Debit

Counter Trend Signal: This is a bearish strategy on a stock or ETF that is experiencing a bullish 1M trend. 

1M/6M Trends: Bullish/Neutral

Technical Score: 3/10

OptionsPlay Score: 129

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

MTCH hit its downward sloping cloud bottom yesterday; is against its TDST Line; is against its Propulsion Exhaustion level; has a daily Setup +9 count; and has its Lagging Line just beneath both its Base and Conversion Lines. We put that all together to look for a pullback targeting the bearish Propulsion Momentum level at $97.55.

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

Please login to the new OptionsPlay version to view this shared trade link below:

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.

Taking Partial Profits

• TAN: 48.8% Gain: Buy to close Apr 22, 2022 $66/$74 Put Vertical @ $1.70 Debit. Close half of this position. For example, if 4 contracts were opened for this trade, we recommend closing 2 contracts. 

Closing Trades

• C: 88% Loss: Sell to close May 20, 2022 $62.5 Call @ $0.37 Credit. 

XLU Bullish Opening Trade Signal

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy May 20, 2022 $73/$78 Call Vertical @ $1.43 Debit

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

1M/6M Trends: Bullish/Bullish

Technical Score: 10/10

OptionsPlay Score: 118

Please login to the new OptionsPlay version to view this shared trade link below:

View XLU Trade

View PEP Trade

Strategy Details

Strategy: Call Credit Spread

Strategy Direction: Bearish

Details: Sell to open May 6, 2022 $165/$170 Call Vertical @ $2.30 Credit

Counter Trend Signal: This is a bearish vertical spread trade on the a ETF that has a bullish 1M trend.

1M/6M Trends: Bullish/Neutral

Technical Score: 9/10

OptionsPlay Score: 111

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

Our bearish DailyPlay today is Pepsico Inc (PEP). PEP is part of the Staples sector that has shown long-term underperformance relative to the S&P 500 and losing relative strength in recent sessions. PEP has recently rallied after declining to the $153 support level. Price is losing momentum near the $165 resistance area which provides an excellent risk/reward bearish entry.  

View ALL Trade

Strategy Details

Strategy: Call Credit Spread

Strategy Direction: Bearish

Details: Sell to open May 20, 2022 $140/$145 Call Vertical @ $2.20 Credit. We recommend opening a half position in ALL. For example, if you usually open 10 contracts for a trade, we recommend only opening 5 contracts for this one. 

Counter 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: 112

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

Like most other stocks, this has rallied sharply over the past two weeks. Now it finds itself against its all-time highs while marking a Setup +9 count. It wouldn’t surprise me if we see some consolidation starting shortly. With ALL’s next quarterly earnings report not due out until May 4, there’s no major bullish fundamental catalyst at play for almost six more weeks. As such, we will sell this call vertical here, looking for a price pullback/consolidation over the next few weeks. We’ll likely cover this short idea on a stock pullback to near $132.