DailyPlay – Opening Trade (NOC) – February 8, 2024

NOC Bullish Opening Trade Signal

Investment Rationale

Our bullish NOC trade is at 36% profit based on pre-market data, and we will, therefore, add more exposure to this winning position. When managing our portfolio of trades, we always ensure to cut our losses quickly, like with the AMZN trade, and to add to winners. We do this to increase our odds of profitability by ensuring that our losses remain small and by continuing to put ourselves in opportunities to potentially hit home runs with winning trades such as with NOC. As NOC has broken out above its $450 resistance level, we’re more confident that it will continue higher to fill the gap at $463 which is our next upside target. 

As such, we will be adding another 2 contracts to our existing 3 contracts, based on an account size of $100k. We will keep the strike prices and expiry dates the same.

NOC – Daily

NOC Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 Contracts March 22nd $450/$475 Call Vertical Spreads @ $10.45 Debit per contract.

Total Risk: This trade has a max risk of $2,090 (2 Contracts x $1,045) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $1,045 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that broke above an area of resistance.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 101

Stop Loss: @ $5.23 Credit. (50% loss of the premium)

View NOC 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 Wednesday’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 NOC Trade