DailyPlay – Closing Trades (SHOP, CSCO) – September 4, 2024

Closing Trade

• SHOP – 88.17% loss: Buy to Close 9 Contracts (or 100% of your Contracts) Sept 27th $74/$70 Put Vertical Spreads @ $2.58 Debit. DailyPlay Portfolio:  By Closing all 9 Contracts, we will pay $2,322. We initially opened these Contracts on August 16 @ $1.37 Credit. Our loss, therefore, is $1,089.
• CSCO – 8.08% loss: Sell to Close 20 Contracts (or 100% of your Contracts) Oct 18th $50/$52.50 Call Vertical Spreads @ $0.91 Credit. DailyPlay Portfolio:  By Closing all 20 Contracts, we will receive $1,820. We initially opened these Contracts on August 21 @ $0.99 Debit. Our loss, therefore, is $160.

Investment Rationale

Despite a shortened week for Labor Day, we have an outsized amount economic data due this week for the labor market. With the slowdown in manufacturing data and Fed surveys that show a continued cooling of the labor market, there is a heightened risk that non-farm payrolls on Friday will drive further market volatility. Due to this, we recommend reducing our overall long exposure in the DailyPlay portfolio for positions that have not yet reached their stop loss or take profit objective. We are going to close out our SHOP and CSCO trades as they have exposure to a slowdown in consumer spending and the overall semiconductor industry.