DailyPlay – Portfolio Review – May 10, 2024
DailyPlay Portfolio Review Investment Rationale As buyers...
Read MoreStrategy: Short Put Vertical Spread
Direction: Bullish
Details: Sell to Open 3 Contracts Jan 26th $106/$593 Put Vertical Spreads @ $5.53 Credit per contract.
Total Risk: This trade has a max risk of $2,241 (3 Contracts x $747) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $747 to select the # contracts for your portfolio.
Trend Continuation Signal: This is a bullish trade on a stock that is in a bullish trend.
1M/6M Trends: Bullish/Bullish
Relative Strength: 10/10
OptionsPlay Score: 92
Stop Loss: @ $11.06 Debit. (100% loss on premium paid)
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 Friday’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.
Investment Rationale
As tech stocks continue to outperform as the relative momentum starts to return to the Technology Sector. As such, ROKU broke out above a key price of $100. This was followed by a bounce higher which now confirms $100 as support for further upside.
We will look to Sell the Jan 26th $106/93 Put Vertical @ $5.53 Credit. With a hypothetical portfolio of $100,000, we recommend risking 2% of the portfolio’s value to this trade, which is 3 Contracts for a risk of $2,241. We will set a stop loss on the put spread at around 100% of the premium paid @ $11.06 Debit.
ROKU – Daily
DailyPlay Portfolio Review Investment Rationale As buyers...
Read MoreInvestment Rationale As AI-related stocks such as META,...
Read MoreInvestment Rationale As equity markets rally back above its...
Read MoreInvestment Rationale With ADBE rallying 6% from its $465...
Read More
Share this on