The bullish DailyPlay for Thursday, September 9th is Fidelity National Information Services Inc (FIS). FIS is part of the Technology sector which has experienced a 2.9% rally in the last month.  

Technical View

• Bullish engulfing candles on both daily and weekly timeframes indicate a possible reversal
• Price has declined to a strong area of weekly support and bouncing higher.
• Mean reversion – price has significantly deviated from the 200 D MA to the downside and an upside correction in the range can be expected

Fundamental View

• Merger with WP allows for revenue growth and cost synergies
• FIS offers secular exposure to banking as well as cyclical exposure with emphasis on consumers
• Earnings: Oct 28 (49 Days)

As this is a Debit Spread, look to take profits at 75%-100% and cut losses at 50%:

• Take Profit: $8.36 – $9.56
• Stop Loss: $2.39

View FIS Trade

Taking Profits

• HON – 65% Gain: Short Oct 1, 2021 $230/$240 Call Vertical​  @ $1.31 Debit
• MOS – 17% Loss: Short Sep 24, 2021 $30/$33 Put Vertical​  @ $1.19 Debit

DailyPlay Positions Outlook:

Equities remain elevated but signs of risk aversion are seeping in with the US Doller Index (DXY) gaining momentum as investors start to worry about the Delta variant impacting the ongoing recovery. The expectation for equities is that the next few months may be bumpy which comes after the S&P 500 gained 20% YTD. We see outperformance in the Nasdaq 100 as rotation into Tech provides a defense against a slowdown in other sectors. We take this opportunity to take profits on HON which surpassed our TP level and mitigate minor losses on MOS in accordance with closing our trades near 21 days to expiration.