DailyPlay – Opening Trade (AAPL) Closing Trade (META) – March 13, 2024

Closing Trade

• META – 11.35% Loss: Sell to Close 4 Contracts (or 100% of your Contracts) March 28th $495/$480 Put Vertical Spreads @ $5.47 Credit. DailyPlay Portfolio: By Closing all 4 Contracts, we will receive $2,188. We initially opened these 4 Contracts on March 5 @ $6.17 Debit. Our average loss, therefore, is $70 per contract. 

AAPL Bullish Opening Trade Signal

Investment Rationale

With only 15 days to expiration and the trade just sitting at breakeven, let’s look to close out META, and the markets shrug off the inflation print and continue to march on higher. Let’s focus our attention on our winning trades such as AAPL and GOOGL and manage those to be large winners. 

AAPL has completed a bounce off its $170 support level and trades at a relative discount to its historical valuation, making our $180 upside target now within reach. I’m taking this opportunity to add another 2% of our portfolio’s exposure to this trade, which is another 4 contracts based on our hypothetical $100,000 sized portfolio. This is following our methodology to help you become a profitable trader by focusing on turning a small win into a potentially much larger winner. We achieve this by adding exposure when we’re correct (AAPL) and reducing exposure where we are incorrect in our market thesis (META). 

AAPL – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 Contracts April 5th $170/$180 Call Vertical Spreads @ $4.58 Debit.

Total Risk: This trade has a max risk of $1,832 (4 Contracts x $458) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $458 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that has recently bounced higher off support.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 97

Stop Loss: @ $2.29 Credit. (50% loss of premium paid)

View AAPL 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 Tuesday’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 AAPL Trade