DailyPlay – Closing Trade (TSM) – July 25, 2024

Investment Rationale

With the S&P 500 breaking below the key support level of $5450 today, the tone of the market shifts to be far more fearful and bearish. The narrowness of the market over the past few months is starting to rear its ugly head as everyone heads for the exits across a few crowded trades. With Semis leading the move lower we much trim our long exposure further with TSM today. 

Closing Trade

• TSM – 116.36% loss: Buy to Close 2 Contracts (or 100% of your Contracts) Aug 23rd $185/$170 Put Vertical Spreads @ $11.90 Debit. 
  DailyPlay Portfolio:  By Closing both Contracts, we will be paying $2,380. We initially opened these 2 Contracts on July 10 @ $5.50 Credit. Our average loss, therefore, is $640 per contract.