Quick Take: Blow Off Bottom – Bullish Trade
Time Frame: Three To Seven Days.
Underlying Stock: Bullish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Up.
Option Position: Short Expiring ATM Put – Long Expiring ATM -2 Put (Bullish Put Credit Spread) & Long Deferred ATM +2 Call.
Maximum Risk: Initial Put Credit Spread minus the Deferred Call Debit.
Summary: The stock performs as anticipated. The short expiring put spread expires worthless and the long deferred call gains additional premium.
Quick Take: Blow Off Top – Bearish Trade
Time Frame: Three To Seven Days.
Underlying Stock: Bearish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Down.
Option Position: Short Expiring ATM Call – Long Expiring ATM +2 Call (Bearish Call Credit Spread) & Long Deferred ATM -2 Put.
Maximum Risk: Initial Call Credit Spread minus the Deferred Put Debit.
Summary: The stock performs as anticipated. The short expiring call spread expires worthless and the long deferred put gains additional premium.
Current Blow Off Trades
| Market Edge – ‘Market Posture’ | Bullish | ||||||||
| Blow Off Bottom Horizontal Trade (Bullish) | |||||||||
| Open | Short Put | Long Put | Spread | Long Call | |||||
| Open | Stock | 03/08/19 | 03/08/19 | 03/15/19 | Long Call | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| TSLA | 03/04/19 | $286.42 | 285.0 | 282.5 | $1.11 | 275.0 | $18.55 | $17.44 | $34.88 |
| Blow Off Top Horizontal Trade (Bearish) | |||||||||
| Open | Short Call | Long Call | Spread | Long Put | |||||
| Open | Stock | 03/08/19 | 03/08/19 | 03/15/19 | Long Put | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| FDX | 03/04/19 | $184.65 | 185.0 | 190.0 | $1.44 | 190.0 | $6.35 | $4.91 | $9.82 |
| BA | 03/04/19 | $440.00 | 440.0 | 442.5 | $1.27 | 445.0 | $9.50 | $8.23 | $16.46 |
| Track Record | |||||||||
| Risk Capital—-> | $20,000 | ||||||||
| % | Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 77.8% | 22.2% | 13.7% | 79.4% | 19 | 9 | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.