By Dan Darrow

October 26, 2022

Intraday Update: GOOGL, XLRE

Disappointing Big Tech earnings are knocking the indices lower this morning, and it is starting what should be a busy session by giving up a large portion of yesterday's gains. There are a couple of positions that need managing early:
  • A top and bottom line miss has knocked GOOGL sharply lower this morning, with the stock staring at $7+ down open (the target move for the strangle). GOOGL will be opening near a key area of support, so the plan will be to work quickly to lock in the Nov04 $100 - $96 put spread and wait to see if there is a bounce to recover some premium on the bull portion of the strangle.
  • We gave the XLRE Nov18 $35 put slightly extra room yesterday to see if the recent strength in Bonds cooled, but with no quick pullback off the open on either Bonds or XLRE today, the position needs to be closed. XLRE is above the 8day ema and 20day sma, and the trade needs to be closed before a sustained bounce can develop.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication