By Dan Darrow
September 14, 2022
Intraday Update: ORCL, ICPT
It's been a choppy, back-and-forth session today, making for a slightly slower day of updates. There are a couple of positions that need managing this afternoon, though, and depending on how the indices finish, it may set up a busy Friday:
- ORCL has now dropped below 72 to send the roll down into the money, so the trade will be closed. The Sep23 $72 - $69 put spread will be closed this afternoon, as will the Sep23 $80 - $84 call spread. The strangle ended up being a push, but that is better than the possible outcome after a flat day of action yesterday.
- We are going to break up the ICPT strangle. The Oct21 $17.50 - $15 put spread will be closed as the stock is now back into the ~16.50 area. The strangle has been skewed disproportionally in favor of the bear side, with little upside to continuing to hold it, so the put spread will be exited. The call spread will be held into the data as a low debit, speculative trade. If you are not comfortable with this spread potentially going to $0, it would be better to exit the remainder of the position. Data should be out by the end of September.
Trader Author Portfolio Holdings
**As of the date and time of publication