Quick Take: Blow Off Bottom – Bullish Trade
Time Frame: Three To Seven Days.
Underlying Stock: Bullish Market Edge Opinion – No Position.
Desired Stock Price Direction: Up.
Option Position: Short Expiring ATM Put – Long Expiring ATM -2 Put (Credit Spread) & Long Deferred ATM +2 Call.
Desired Result: The stock performs as anticipated. The short expiring put credit spread expires worthless and the long call gains additional premium.
Maximum Risk: Initial Put Credit Spread minus the Deferred Call Debit.
Quick Take: Blow Off Top – Bearish Trade
Time Frame: Three To Seven Days.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Down.
Option Position: Short Expiring ATM Call – Long Expiring ATM +2 Call (Credit Spread) & Long Deferred ATM -2 Put.
Desired Result: The stock performs as anticipated. The short expiring call credit spread expires worthless and the long put gains additional premium.
Maximum Risk: Initial Call Credit Spread minus the Deferred Put Debit.
Current Blow Off Trades
| Market Edge – ‘Market Posture’ | Bullish | |||||||
| Blow Off Bottom Horizontal Trade (Bullish) | ||||||||
| Open | *Short-Exp | *Long-Exp | Put | Long-Def | Deferred | |||
| Open | Stock | ATM Put | ATM -2 Put | Spread | ATM +2 Call | Call | Max | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Loss |
| No Plays | 08/27/18 | ###### | ||||||
| Blow Off Top Horizontal Trade (Bearish) | ||||||||
| Open | *Short-Exp | *Long-Exp | Call | Long-Def | Deferred | |||
| Open | Stock | ATM Call | ATM +2 Call | Spread | ATM -2 Put | Put | Max | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Loss |
| ILMN | 08/27/18 | $343.32 | 345.0 | 347.5 | $1.12 | 340.0 | $4.00 | -$5.38 |
| UAL | 08/28/18 | 86.82 | 86.0 | 88.0 | $0.97 | 85 | $0.76 | -$1.79 |
| * Next to symbol indicates that the stock selection is in its second week so the defered call or put is the same. | ||||||||
| ** Selections are made on Monday, Tuesday & Wednesday and have spreads with Friday’s expiration. | ||||||||
Results For Previous Blow-Off Trades
| Blow Off Bottom Horizontal Trade (Bullish) | |||||||||||
| Open | Close | Open | Close | Open | Close | ||||||
| Open | Stock | Close | Stock | P/L | Spread | Spread | Call | Call | P/L | Weekly | |
| Stock | Date | Price | Date | Price | Stock | Credit | Debit | Debit | Credit | Trade | P/L |
| WYNN | 08/20/18 | $144.59 | 08/24/18 | $145.90 | $1.31 | $0.52 | $0.00 | $2.76 | $2.30 | $6 | $6 |
| $0 | $6 | ||||||||||
| $0 | $6 | ||||||||||
| $0 | $6 | ||||||||||
| Profit/Loss Blow Off Bottom Trades: | $6 | ||||||||||
| Weekly % Return: | 0.0% | ||||||||||
| Blow Off Top Horizontal Trade (Bearish) | |||||||||||
| Open | Close | Open | Close | Open | Close | ||||||
| Open | Stock | Close | Stock | P/L | Spread | Spread | Put | Put | P/L | Weekly | |
| Stock | Date | Price | Date | Price | Stock | Credit | Debit | Debit | Credit | Trade | P/L |
| JNJ | 08/20/18 | $136.56 | 08/24/18 | $135.95 | -$0.61 | $0.56 | $0.00 | $1.50 | $1.42 | $48 | $48 |
| NKE | 08/21/18 | 82.18 | 08/24/18 | $82.45 | $0.27 | $0.44 | $0.41 | $0.79 | $0.29 | -$47 | $1 |
| FDX | 08/21/18 | 250.09 | 08/24/18 | $245.02 | -$5.07 | $1.43 | $0.00 | $1.95 | $3.40 | $288 | $289 |
| AGN | 08/22/18 | 191.11 | 08/24/18 | $186.80 | -$4.31 | $1.25 | $0.00 | $1.40 | $2.19 | $204 | $493 |
| # Of Trades: | 3 | ||||||||||
| Total Risk Capital: | $20,000 | ||||||||||
| Profit/Loss Blow Off Top Trades: | $493 | ||||||||||
| Weekly % Return: | 2.5% | ||||||||||
| Total Profit/Loss: | $499 | ||||||||||
| Total Weekly % Return: | 2.5% | ||||||||||
| Risk Capital-> | $20,000 | ||||||||||
| Win % | Loss % | % P/L | Annualized ROI | # Weeks | |||||||
| 74.0% | 350.0% | 3.6% | 46.2% | 4 | |||||||