DailyPlay – Closing Trade (DXCM) – January 23, 2024

Closing Trade

• DXCM – 50.91% Gain: Buy to Close 3 Contracts (or 100% of your Contracts) Feb 16th $120/$110 Put Vertical Spreads @ $1.62 Debit. DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $486. We initially opened these 3 Contracts on Dec 27 @ $3.30 Credit. Our average gain, therefore, is $168 per contract. 

Investment Rationale

As we continue to monitor markets, we see the major indices approaching short-term overbought conditions. This provides an opportunity to start closing out some bullish positions. The DXCM credit spread performed well as price continued to grind higher. However, the $130 resistance level seems to be holding firm and we will therefore close this trade for a 50% gain.