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 | Long Call | ||||||
| Open | Stock | 05/24/19 | 05/24/19 | Spread | 05/31/19 | Long Call | Total | 100% | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| DE | 05/20/19 | $133.95 | 134.0 | 132.0 | $0.75 | 131.0 | $3.90 | $3.15 | $6.30 |
| QQQ | 05/21/19 | $180.97 | 180.0 | 178.0 | $0.58 | 178.5 | $4.18 | $3.60 | $7.20 |
| Blow Off Top Horizontal Trade (Bearish) | |||||||||
| Open | Short Call | Long Call | Long Put | ||||||
| Open | Stock | 05/24/19 | 05/24/19 | Spread | 05/31/19 | Long Put | Total | 100% | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| NONE | 01/00/00 | $0.00 | 0.0 | 0.0 | $0.00 | 0.0 | $0.00 | $0.00 | $0.00 |
| $0.00 | $0.00 | ||||||||
| Track Record | |||||||||
| Risk Capital—-> | $20,000 | ||||||||
| % | Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 57.4% | 42.6% | 17.2% | 47.1% | 48 | 19 | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.