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-Exp | *Long-Exp | *Put | **Long-Def | **Deferred | ||||
| Open | Stock | ATM Put | ATM -2 Put | Spread | ATM +2 Call | Call | Max | Total | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Loss | Cost |
| NVDA | 11/19/18 | $153.77 | 155.0 | 150.0 | $2.17 | 162.5 | $3.30 | -$6.13 | $1.13 |
| CAT | 11/20/18 | $123.75 | 124.0 | 122.0 | $0.88 | 125.0 | $2.66 | -$3.78 | $1.78 |
| UTX | 11/20/18 | $125.80 | 126.0 | 124.0 | $0.75 | 127.0 | $1.86 | -$3.11 | $1.11 |
| Market Edge – ‘Market Posture’ | Neutral | ||||||||
| 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 | Total | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Loss | Cost |
| NONE | #VALUE! | $0.00 | |||||||
| * Selections are made on Monday, Tuesday & Wednesday and have Exp spreads with Friday’s expiration. | |||||||||
| **Selections are made on Monday, Tuesday & Wednesday and have Def Put/Call positions with next Friday’s expiration. | |||||||||
| Track Record | |||||||||
| Risk Capital–> | $20,000 | ||||||||
| % | % Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 45.5% | 54.5% | -0.3% | -0.9% | 35 | 16 | ||||
Results For Previous Blow-Off Trades
| Blow Off Bottom Horizontal Trade (Bullish) | |||||||||||
| Open | Close | Open | Close | Open | Close | ||||||
| Open | Stock | Close | Stock | # Of | Spread | Spread | Call | Call | P/L | Weekly | |
| Stock | Date | Price | Date | Price | Spreads | Credit | Debit | Debit | Credit | Trade | P/L |
| CAT | 11/12/18 | $127.55 | 11/16/18 | $129.96 | 1 | $0.77 | $0.00 | $2.12 | $2.27 | $92 | $92 |
| IWM | 11/12/18 | $152.30 | 11/16/18 | $151.94 | 1 | $0.54 | $0.56 | $1.67 | $0.59 | -$110 | -$18 |
| $0 | -$18 | ||||||||||
| Profit/Loss Blow Off Bottom Trades: | -$18 | ||||||||||
| Weekly % Return: | -0.1% | ||||||||||
| Blow Off Top Horizontal Trade (Bearish) | |||||||||||
| Open | Close | Open | Close | Open | Close | ||||||
| Open | Stock | Close | Stock | # Of | Spread | Spread | Put | Put | P/L | Weekly | |
| Stock | Date | Price | Date | Price | Spreads | Credit | Debit | Debit | Credit | Trade | P/L |
| NONE | $0 | $0 | |||||||||
| $0 | $0 | ||||||||||
| $0 | $0 | ||||||||||
| Profit/Loss Blow Off Top Trades: | $0 | ||||||||||
| Weekly % Return: | 0.0% | ||||||||||
| Total Risk Capital: | $20,000 | ||||||||||
| Total Profit/Loss: | -$18 | ||||||||||
| Total Weekly % Return: | -0.1% | ||||||||||
| Track Record | |||||||||||
| % | % Annualized | # Of | # Of | ||||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||||
| 45.5% | 54.5% | -0.3% | -0.9% | 35 | 16 | ||||||