The following is a list of this week’s Bullish and Bearish Credit Spread Selections. Each week, when conditions warrant, one – two new Bull and Bear credit spreads with a one or two week expiration are added to the Open Positions list. These stocks have either a Bullish (Bull Spread) or Bearish (Bear Spread) technical Opinion from Market Edge. The selections are added to the portfolio on Monday’s morning with Monday’s prices. The stocks are removed from the portfolio on the option’s expiration date.
Quick Take: Bullish Credit Spread Strategy
Time Frame: One Week.
Underlying Stock: Bullish Market Edge Opinion – No Position.
Desired Stock Price Direction: Sideways to Up.
Option Position: Put Credit Spread.
Desired Result: Stock performs as anticipated and the credit spread expires worthless.
Maximum Risk: The difference between the strike prices minus the credit spread.
Quick Take: Bearish Credit Spread Strategy
Time Frame: One Week.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Sideways to Down.
Option Position: Call Credit Spread.
Desired Result: Stock performs as anticipated and the credit spread expires worthless.
Maximum Risk: The difference between the strike prices minus the credit spread.
This Week’s Bull – Bear Credit Spread Selections
| Market Edge ‘Market Posture’ | Neutral | VIX–> | 17.36 | Neutral | |||||
| Bullish Spreads | |||||||||
| Break | |||||||||
| Open | One Week | One Week | Even Price | ||||||
| Open | # | Stock | Short Put | Long Put | Credit | Max | *** % Of | Credit-SP | |
| * Stock | Date | Spreads | Price | Strike Price | Strike Price | Spread | Loss | Spread | (Below) |
| MAR | 11/12/18 | 1 | $116.45 | 116.0 | 115.0 | $0.36 | -$0.64 | 36.0% | $115.64 |
| Bearish Spreads | |||||||||
| Break | |||||||||
| Open | One Week | One Week | Even Price | ||||||
| Open | # | Stock | Short Call | Long Call | Credit | Max | *** % Of | Credit+SP | |
| ** Stock | Date | Spreads | Price | Strike Price | Strike Price | Spread | Loss | Spread | (Above) |
| RCL | 11/12/18 | 1 | $106.30 | 107.0 | 108.0 | $0.43 | -$0.57 | 43.0% | $107.43 |
| XBI | 11/12/18 | 1 | $78.71 | 79.0 | 80.0 | $0.48 | -$0.52 | 48.0% | $79.48 |
| Prices Are Monday’s Opening Prices | |||||||||
| * Stocks Have A Bullish Market Edge Opinion | |||||||||
| ** Stocks Have A Bearish Market Edge Opinion | |||||||||
| *** % Of Spread: The Higher The Better | |||||||||
Last Week’s Bull – Bear Credit Spread Results
| Bullish Spreads | ||||||||||
| Open | # | Closing | Short Put | Long Put | Credit | Max | Close | *P/L Per | Weekly | |
| Stock | Date | Spreads | Price | S Price | S Price | Spread | Loss | Date | Spread | P/L |
| GLD | 11/05/18 | 1 | $114.48 | 116.5 | 115.5 | $0.36 | -$0.64 | 11/09/18 | -$60 | -$60 |
| 0 | $0.00 | 0.0 | 0.0 | $0.00 | $0.00 | $0 | -$60 | |||
| Profit/Loss Bullish Spreads: | -$60 | |||||||||
| Weekly % Return: | -0.3% | |||||||||
| Bearish Spreads | ||||||||||
| Open | # | Closing | Short Call | Long Call | Credit | Max | Close | *P/L Per | Weekly | |
| Stock | Date | Spreads | Price | S Price | S Price | Spread | Loss | Date | Spread | P/L |
| BA | 11/05/18 | 1 | $369.34 | 357.5 | 362.5 | $2.33 | -$2.67 | 11/09/18 | -$246 | -$246 |
| DIS | 11/05/18 | 1 | $118.00 | 116.0 | 117.0 | $0.53 | -$0.47 | 11/09/18 | -$47 | -$293 |
| QQQ | 11/05/18 | 1 | $171.52 | 167.0 | 168.0 | $0.57 | -$0.43 | 11/09/18 | -$43 | -$336 |
| Profit/Loss Bearish Spreads: | -$336 | |||||||||
| Weekly % Return: | -1.7% | |||||||||
| Total Profit/Loss: | -$396 | |||||||||
| Total Weekly % Return: | -2.0% | |||||||||
| Total Number Of Trades: | 4 | |||||||||
| *Transaction Fees NOT Included In Results | ||||||||||
| Risk Capital–> | $20,000 | # Of Weeks—> | 66 | |||||||
| Avg. % | Avg. % | Avg. % | Avg % | Avg. % | Avg. % | Total Net % | Annual % | |||
| Full Win | Part Win | Part Loss | Full Loss | FW + PW | FL + PL | Profit/Loss | Profit/Loss | |||
| 45.0% | 12.1% | 8.0% | 31.4% | 57.1% | 39.5% | -14.5% | -11.4% | |||