DailyPlay – Closing Trade (ABBV, ABNB, AKAM, DIS, TSLA) & Portfolio Review – October 28, 2024

Closing Trades

• ABBV – 10.07% loss: Sell to Close 7 Contracts (or 100% of your Contracts) November 1 $185 Puts @ $2.68 Credit. DailyPlay Portfolio:  By Closing all 7 Contracts, we will receive $1,876. We initially opened these 7 Contracts on September 27 @ $2.98 Debit. Our loss on this trade, therefore, is $30 per Contract.
• ABNB – 43.48% loss: Sell to Close 3 Contracts (or 100% of your Contracts) November 1 $133 Calls @ $3.38 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will receive $1,014. We initially opened these 3 Contracts on October 18 @ $6.38 Debit. Our loss on this trade, therefore, is $300 per Contract.
• AKAM – 22.88% loss: Sell to Close 4 Contracts (or 100% of your Contracts) November 8 $101 Calls @ $4.55 Credit. DailyPlay Portfolio:  By Closing all 4 Contracts, we will receive $1,820. We initially opened these 4 Contracts on October 16 @ $5.90 Debit. Our loss on this trade, therefore, is $135 per Contract.
• DIS – 53.57% loss: Sell to Close 14 Contracts (or 100% of your Contracts) November 8 $97 Calls @ $1.30 Credit. DailyPlay Portfolio:  By Closing all 14 Contracts, we will receive $1,820. We initially opened these 14 Contracts on October 21 @ $1.64 Debit. Our loss on this trade, therefore, is $34 per Contract.
• TSLA – 88.28% loss: Sell to Close 3 Contracts (or 100% of your Contracts) November 15 $217.50/$195 Put Vertical Spreads @ $1.00 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will receive $300. We initially opened these 3 Contracts on October 22 @ $8.50 Debit. Our loss on this trade, therefore, is $750 per Contract.

DailyPlay Portfolio Review

Our Trades

ABBV – 4 DTE

Bearish Puts – ABBV (AbbVie Inc.) drifted lower this past week. The anticipated earnings date is 10/30/24, and the gradual rise in implied volatility (IV) as earnings approach has kept our out-of-the-money November 1st put option in play. However, with only 4 days to expiration (DTE) and the stock not quite reaching the strike, it’s time to close the position. We are closing this position today.

ABNB – 4 DTE

Bullish Calls – Not much has changed with our Airbnb, Inc. (ABNB) position since we established it, aside from some initial strong momentum. With earnings scheduled for Thursday, October 30, we’re seeing a gradual increase in implied volatility (IV), which has provided some support to our Buy to Open 3 ABNB Nov 1 $133 Calls, though the stock remains stagnant. With only four days to expiration (DTE) and earnings right around the corner, it’s time to close the position. We are closing this position today.

AKAM – 11 DTE

Bullish Calls – The stock has reversed course, and our long call position is not performing well. With 11 days to expiration (DTE) remaining and earnings scheduled for Thursday, November 7, it’s time to close the position. We are closing this position today.

BMY – 18 DTE

Bullish Calls – Bristol-Myers Squibb Co. (BMY) recently broke out above its trading range and has since stalled, but we’ll keep a close eye on this position. With the upcoming earnings announcement scheduled before the market opens on October 31, 2024, we’re observing a gradual increase in implied volatility, which supports our decision to stay the course for now.

DIS – 11 DTE

Bullish Calls – We rolled this trade a week ago and due to a change in the market direction. We are closing this position today.

JNJ – 32 DTE

Bullish Credit Spread – Johnson & Johnson (JNJ) stock price is trading around the short strike of our put vertical spread. We’ll stay the course for now but will adjust or close in the near term if necessary.

SQ – 25 DTE

Bullish Debit Spread – Block Inc. (SQ) The company’s earnings are expected on November 7th, and there is a good possibility that we will remain in this position through the report.

TSLA – 18 DTE

Bearish Debit Spread – Tesla, Inc. (TSLA) gapped up after the company’s earnings report, and since we were bearish on the trade, it’s time to close the position. We are closing this position today.