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.
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
