DailyPlay – Closing Trade (META) Opening Trade (ABNB) – October 18, 2024

Closing Trade

META – 79% loss: Sell to Close 4 Contracts (or 100% of your Contracts) October 18 $585/$600/$610 Call Butterfly Spreads @ $0.87 Credit. DailyPlay Portfolio:  By Closing all 4 Contracts, we will receive $480. We initially opened these 24 Contracts on October 10 @ $4.18 Debit. Our loss on this trade, therefore, is $331 per Contract.

ABNB Bullish Opening Trade Signal

Investment Rationale

Airbnb, Inc. (ABNB) recently broke out above its trading range with strong momentum, outperforming the S&P 500 and presenting further upside potential toward our $145 target. While ABNB trades at a premium compared to its peers, it is expected to deliver faster top and bottom-line growth, and it remains significantly more profitable, making it modestly undervalued. With earnings scheduled for Thursday, October 30th, we will incorporate the anticipated increase in implied volatility from this event into our strategy selection.

ABNB – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 3 ABNB Nov 1st $133 Calls @ $5.98 Debit per Contract.

Total Risk: This trade has a max risk of $1,794 (3 Contracts x $598) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $598 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Neutral

Relative Strength: 3/10

OptionsPlay Score: 81

Stop Loss: @ $2.99 (50% loss of premium)

View ABNB 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 ABNB Trade