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’ | Neutral | ||||||||
| Blow Off Bottom Horizontal Trade (Bullish) | |||||||||
| Open | Short Put | Long Put | Long Call | ||||||
| Open | Stock | 04/05/19 | 04/05/19 | Spread | 04/12/19 | Long Call | Total | 100% | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| NONE | 04/01/19 | $0.00 | 0.0 | 0.0 | $0.00 | 0.0 | $0.00 | $0.00 | $0.00 |
| $0.00 | $0.00 | ||||||||
| Blow Off Top Horizontal Trade (Bearish) | |||||||||
| Open | Short Call | Long Call | Long Put | ||||||
| Open | Stock | 04/05/19 | 04/05/19 | Spread | 04/12/19 | Long Put | Total | 100% | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| PG | 04/01/19 | $103.25 | 103.0 | 105.0 | $0.77 | 105.0 | $2.01 | $1.24 | $2.48 |
| V | 04/02/19 | $156.79 | 157.5 | 160.0 | $0.64 | 160.0 | $3.30 | $2.66 | $5.32 |
| SPY | 04/02/19 | $285.76 | 286.0 | 288.0 | $0.79 | 287.5 | $2.80 | $2.01 | $4.02 |
| Track Record | |||||||||
| Risk Capital—-> | $20,000 | ||||||||
| % | Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 67.9% | 32.1% | 23.1% | 92.2% | 29 | 13 | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.