Back to Options In Play Portal

By Dan Darrow

Click Here to Print this Page

December 20, 2022

Intraday Update: XBI, PARA, TLT

Indices are still sliding, now marking their fifth down day in a row since last week. The continued weakness (and some early gap downs) means there are a few updates:

  • XBI has not bounced early, and after getting hit hard yesterday, the ETF is beginning to break key recent support. The Jan20 $86 - $94 call spread needs to be closed before a major move lower can develop.
  • PARA has found buyers around 16.75 again off the open, so we will work quickly to lock in some money on the Jan20 $18 put and roll down to a lower debit Jan20 $16.50 - $14.50 put spread. The next target is <16.
  • An unexpected policy adjustment from the Bank of Japan has created volatility in the debt and currency market overnight, and TLT's sharp gap lower has sent the ETF running away to the downside. Unfortunately, the move comes right as we were attempting to initiate a bearish position, so we will need to hold off opening the Jan20 put spread 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

DISCLOSURES