DaiyPlay – Opening Trade (NOC) Closing Trade (NEM) – February 23, 2024

Closing Trade

• NEM – 55.24% Loss: Sell to Close 10 Contracts (or 100% of your Contracts) April 19th $32.50 Calls @ $0.94 Credit. DailyPlay Portfolio: By Closing all 10 Contracts, we will receive $940 Credit. We initially opened these 10 Contracts on Feb 12 @ $2.00 Debit. Our average loss, therefore, is $106 per contract. 

NOC Bullish Opening Trade Signal

Investment Rationale

After NEM reported disappointing earnings and crashed over 7%, it triggered our stop loss level and warrants closing out the trade with a roughly 1% loss of our overall portfolio. 

Price action on NOC (Northrup) continues to look positive. We are taking this opportunity to add another 1% of our total portfolio’s value to this trade, which is to buy 1 more contract. We have a $463 initial target with an extended target of $475. 

NOC – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 1 Contract March 22nd $450/$475 Call Vertical Spread @ $10.50 Debit.

Total Risk: This trade has a max risk of $1,050 (1 Contract x $1,050) based on a hypothetical $100,000 portfolio risking 1%. We suggest using 1% of your portfolio value and divide it by $1,050 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is mildly bullish and expected to continue higher.

1M/6M Trends: Mildly Bullish/ Neutral

Relative Strength: 5/10

OptionsPlay Score: 107

Stop Loss: @ $5.25 Credit. (50% loss to 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 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 NOC Trade