By Dan Darrow

September 16, 2022

Intraday Update: XLE, NIO

Indices have stopped going down, but they also aren't rebounding, and many stocks are continuing to slide. There are a couple of positions that need managing:

  • XLE had been resilient all week as it held above 80, but a drop on Oil today and overall market weakness has finally caught up to it. XLE is sliding below 78 and trading under the key 100day sma (the focus of the bullish strategy), so the Oct21 $85 - $88 call spread roll up needs to be closed. This was the last of a couple roll ups, so while it is frustrating to see it closed into weakness, the overall strategy was still a solid winner.
  • Action on NIO has been deteriorating since the open, and the stock's drop near 20 is starting to change the bullish pattern. The Oct21 $22.50 call was only opened today (into a gap down), but because the trade thesis is changing, it makes sense to close the trade here. If the stock resets above 21.50 quickly, we can do a fast revisit for a trade.

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