Quick Take: One Day Wonder – Bullish Trade
Time Frame: One Day.
Underlying Stock: Bullish Market Edge Opinion – No Position.
Desired Stock Price Direction: Up.
Option Position: Long Differed ATM -1or -2 Call – Short Expiring ATM +1 or +2 Call.
Desired Result: The stock performs as anticipated. The short expiring call expires worthless and the long call gains additional premium.
Maximum Risk: Initial debit spread amount.
Quick Take: One Day Wonder – Bearish Trade
Time Frame: One Day.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Down.
Option Position: Long Differed ATM +1 or +2 Put – Short Expiring ATM -1 or -2 Put.
Desired Result: The stock performs as anticipated. The short expiring put expires worthless and the long put gains additional premium.
Maximum Risk: Initial debit spread amount.
This Week’s One-Day Wonder Trades
| Market Posture: | Bullish | |||||||
| Off-Strike Horizontal Bullish Trade | ||||||||
| Market | Open | Short | Long | |||||
| Open | Edge | Stock | Option | ATM +1 +2 | ATM -1, -2 | Debit | Debit | |
| Stock | Date | Opinion | Price | Put/Call | Exp Option | Def Option | Spread | Target |
| REGN | 09/20/18 | Bullish | $389.07 | Call | 392.5 | 385.0 | $7.67 | $15.34 |
| Def Option = Next Friday’s Expiration Serial | ||||||||
| Exp Option = This Friday’s Expiration Serial | ||||||||
| Prices Are Thursday Afternoon’s Around 3:00 PM | ||||||||
| Market Posture: | Bullish | |||||||
| Off-Strike Horizontal Bearish Trade | ||||||||
| Market | Open | Short | Long | |||||
| Open | Edge | Stock | Option | ATM -1, -2 | ATM +1, +2 | Debit | Debit | |
| Stock | Date | Opinion | Price | Put/Call | Exp Option | Def Option | Spread | Target |
| CMG | 09/20/18 | Bearish | $480.19 | Put | 475.0 | 487.5 | $9.48 | $18.96 |
| Def Option = Next Friday’s Expiration Serial | ||||||||
| Exp Option = This Friday’s Expiration Serial | ||||||||
| Prices Are Thursday Afternoon’s Around 3:00 PM | ||||||||
Results For This Week’s One-Day Wonder Trades
| Market | Open | Close | Open | Closed | Spread | Actual | Total | ||
| Open | Edge | Stock | Stock | Debit | Credit | Profit | Profit | Profit | |
| Stock | Date | Opinion | Price | Price | Spread | Spread | Loss | Loss | Loss |
| REGN | 09/20/18 | Bullish | $389.07 | $390.28 | $7.67 | $8.40 | $0.73 | 73.00 | 73.00 |
| CMG | 09/20/18 | Bearish | $480.19 | $467.37 | $9.48 | $13.55 | $4.07 | 407.00 | 480.00 |
| Total Profit/Loss: | $480.00 | ||||||||
| Total Risk Capital: | $20,000 | ||||||||
| Weekly % Return: | 2.4% | ||||||||
| *Transaction Fees NOT Included In Results | |||||||||
| Percent | Percent | # Of | # Of | % | NET % | Annualized | |||
| Win Trades | Loss Trades | Trades | Targets | Target | P/L | ROI | |||
| 63.2% | 36.8% | 55 | 3 | 5.5% | 8.1% | 17.6% | |||