July 25, 2022

Intraday Update: UPST, CAG

A mixed morning is making for a slower start to what should be an incredibly busy week. Both of the proposed trade ideas from last night's letter are above their respective action areas, however, so we need to make some early adjustments on the strategies:

  • With UPST down another ~4% this morning and already at/under 25, some of the potential is being removed from the trade. While I do think there is still potential room lower, the proposed Aug19 $26 - $21 put spread no longer makes sense from a risk to reward perspective. Instead, we will move forward with a lower debit put fly with a midpoint at 20:
    • Long Aug19 $24/$20/$16 put fly (standard ratio 1x2x1)
  • The CAG Sep16 $34 put has been slightly above the action area this morning, but the overall trade thesis still stands. We will adjust the action area up to $1.25 -$ 1.50 to get involved. Also, we will slightly increase the technical stop to 34.30, though this is still a very tight stop from the current 33.85 level.

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