DailyPlay – Closing Trade (GE) – January 31, 2024
Closing Trade
- GE – 63.88% Loss: Buy to Close 6 Contracts (or 100% of your Contracts) Feb 16th $130/$135 Call Vertical Spreads @ $3.10 Debit. DailyPlay Portfolio: By Closing all 6 Contracts, we will be paying $1,860. We initially opened these 6 Contracts on Jan 2 @ $1.89 Credit. Our average loss, therefore, is $121 per contract.
Investment Rationale
We are closing GE at a loss of 63% as our thesis for this bearish trade has been invalidated when GE continued higher. While our rule is to close Credit Spreads at 100% loss, GE broke above the $133 minor resistance level yesterday and has therefore invalidated our bearish thesis on this trade, which is why we will be closing this early to limit further losses.
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