DailyPlay – Rolling Trade (ETN) – September 6, 2024

Closing Trade

• ETN – 46.03% gain: Buy to Close 2 Contracts (or 100% of your Contracts) Sept 20th $290/$310 Call Vertical Spreads @ $5.10 Debit. DailyPlay Portfolio: By Closing both Contracts, we will pay $1,020. We opened these 2 Contracts on August 13 @ $9.45 Credit. The gain, therefore, is $870 which is almost 1% gain on our Portfolio. 

ETN Bearish Opening Trade Signal

Investment Rationale

As ETN trade reaches 2 weeks from expiration and has traded lower since we entered the trade, it’s time to take profits and roll our Sept $290/$310 Call Vertical down and out to the Oct $290/$310 Call Vertical for another @ $7.05 Credit. 

By Rolling ETN we will Close the initial Trade and Open a new Trade with a later Expiry Date.

ETN – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 ETN Oct 18th $290/$310 Call Vertical Spreads $7.05 Credit per Contract.

Total Risk: This trade has a max risk of $2,590 (2 Contracts x $1,295) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $1,295 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that formed a lower high in a downtrend and is likely continuing lower.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 101

Stop Loss: @ $14.10 Debit (100% loss to the value of premium)

View ETN 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 Thursday’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 ETN Trade