August 01, 2022
Intraday Update: RIVN, CAG, FDX, U
A couple of early updates as indices recover from early losses:
- We are going to work quickly this morning on RIVN. The stock closed strong on Friday and is pushing higher early this morning, with a move to 35+ sending the Sep16 $35 - $40 call spread into the money. The stock now has a clear path to start running, so we will stick with a bullish strategy, but we will scale back risk by closing the current spread and rolling up to a Sep9 $37 - $42 call spread. The next target will be $38+.
- CAG is at the technical stop. CAG dropped nicely last week to give a shot to roll down the initial Sep16 put, but the rally into the earnings gap today is changing the bearish pattern. The Sep16 $32 - $29 put spread roll down needs to be closed this morning.
- FDX has run quickly out of the gate this morning, and the stock's move to nearly 240 has taken away a good portion of the potential of the proposed Sep9 $235-245 call spread. Unfortunately, we are going to need to hold off initiating a trade on FDX as it has already hit the initial target before the position was opened. We can revisit a new strategy if the stock consolidates over the next few sessions.
- U has rebounded over the past few sessions (similar to the overall market), and the Aug19 $33 - $29 put spread has lost premium along with the move higher. The trade is at the net debit stop loss range, so it needs to be closed this morning.
Trader Author Portfolio Holdings
**As of the date and time of publication