May 27, 2022
Intraday Update: ABNB, NOW
Indices are sharply higher this morning following yesterday’s strong session, and there are a couple of positions that need managing/adjustments:
- ABNB had been riding the 8day ema steadily lower since its report, but the recent bounce has carried it above the key moving average. We rolled down the initial put spread into the current Jul15 $100 – $95 put spread, but now the remainder of the position needs to be closed as the bearish thesis changes. We can revisit a new trade on this when it resets below 110.
- NOW has popped sharply off the open and the proposed Jul15 $480 – $490 call spread is trading above the action area. The trade still has potential but we need to shift the contracts up to account for the early move. The new strategy will be a Jul15 $500 – $510 call spread, but because of the ~$19-$20 move, it should be approached with smaller size as the risk is now higher.
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
