Closing & Adjust (CSCO, KMX) – June 18th, 2020
DailyPlay Positions Outlook:
As markets recover this week from last week’s selloff, the momentum and optimism have waned with spikes of COVID cases worldwide. We take this opportunity to further reduce our long exposure on CSCO while rolling our KMX profits into a “free” earnings play.
- KMX – Roll to June 26 $98/$106 Call Vertical for a $5.65 Credit
By rolling, we are collecting a credit that is large enough to cover our initial trade cost and a 10% gain while leaving a June 26th, call debit spread to trade the earnings event without risking any capital. To learn more, please review our recent webinar on managing winners.