DailyPlay – Opening Trade (C) – February 16, 2024

C Bullish Opening Trade Signal

Investment Rationale

After breaking out above its $55 resistance level that we were watching, C as a trade is performing nicely and up 55% after just two trading sessions. As a reminder, our goal with the DailyPlay service is to provide you with not just ideas, but walk you through how to outperform. In this scenario, you may be thinking it’s an opportunity to take some profits. Instead, I’m going to advocate that this is an opportunity to add more exposure. Our thesis that C was going to bounce off $52 has proven to be correct. If C were to continue towards its 52-week high and onto its $68 upside target, there is a lot more room for C to run. In order to potentially take advantage of this we are going to add another 2% of our portfolio’s exposure to this trade. 

C – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 4 Contracts April 19th $52.50 Calls @ $4.35 Debit per contract.

Total Risk: This trade has a max risk of $1,740 (4 Contracts x $435) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $435 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is trading in a bullish trend and is expected to continue higher from this level.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 83

Stop Loss: @ $2.18 Credit. (50% loss of premium)

View C 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 Thursday’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 C Trade