The Blow Off Trades – The Week Of – 10-08-18

Quick Take: Blow Off Bottom – Bullish Trade

Time Frame: Three To Seven Days.

Underlying Stock: Bullish Market Edge Opinion – No Position.

Desired Stock Price Direction: Up.

Option Position: Short Expiring ATM Put – Long Expiring ATM -2 Put (Credit Spread) & Long Deferred ATM +2 Call.

Desired Result: The stock performs as anticipated. The short expiring put credit spread expires worthless and the long call gains additional premium.

Maximum Risk: Initial Put Credit Spread minus the Deferred Call Debit.

Quick Take: Blow Off Top – Bearish Trade

Time Frame: Three To Seven Days.

Underlying Stock: Bearish Market Edge Opinion – No Position.

Desired Stock Price Direction: Down.

Option Position: Short Expiring ATM Call – Long Expiring ATM +2 Call (Credit Spread) & Long Deferred ATM -2 Put.

Desired Result: The stock performs as anticipated. The short expiring call credit spread expires worthless and the long put gains additional premium.

Maximum Risk: Initial Call Credit Spread minus the Deferred Put Debit.

Current Blow Off Trades

Market Edge – ‘Market Posture’				Bearish
Blow Off Top Horizontal Trade (Bearish)
		Open	*Short-Exp	*Long-Exp	Call	Long-Def	Deferred
	Open	Stock	ATM Call	ATM +2 Call	Spread	ATM -2 Put	Put	Max
Stock	Date	Price	Strike Price	Strike Price	Credit	Strike Price	Debit	Loss
DE	10/08/18	$154.93	155.0	157.5	$1.02	152.5	$1.84	-$3.32

Results For Previous Blow-Off Trades

		Open		Close		Open	Close	Open	Close
	Open	Stock	Close	Stock	P/L	Spread	Spread	Put	Put	P/L	Weekly
Stock	Date	Price	Date	Price	Stock	Credit	Debit	Debit	Credit	Trade	P/L
DE	10/08/18	$154.93	10/12/18	$148.42	$6.51	$1.02	$0.00	$1.84	$5.15	$433	$433
										$0	$433
				$0.00						$0	$433
				$0.00						$0	$433
Profit/Loss Blow Off Top Trades:				$433
Weekly % Return:				2.2%
Total Risk Capital:				$20,000
Total Profit/Loss:				$433
Total Weekly % Return:				2.2%
									# Of		# Of
Win %		Loss %		% P/L		Annualized ROI			Trades		Weeks
46.7%		53.3%		4.8%		22.7%			23		11