By Dan Darrow

December 05, 2022

Intraday Update: SNOW, TLT, XOP

Indices are lower to start the week, and after a big bullish reversal following its report last week, SNOW is starting to slide to the downside. We scaled back risk on the Dec09 strangle immediately after the report, but now that the stock is sinking back into the mid-140s, we need to close the remainder of the position: Dec09 $160 - $162.50 call spread. We can revisit a new strategy on this once a better setup develops.

TLT is running away from us. We were looking for a quick fade off the 100day sma on TLT following its strong finish last week, but the move has developed too fast for us. The large gap lower and continued weakness early has knocked TLT down >$2, and the ETF has moved too sharply for the Dec30 $107 - $102 put spread. We are going to have to hold off initiating the trade for now, but we can watch to see if there is another setup soon.

XOP is at the initial target range, so it is time to lock in some money on the Dec30 $148 - $142 put spread. The plan will be to close the current spread and roll down to a tighter Dec30 $146 - 142 put spread. The next target is <144.50.

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