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’ | Bearish | ||||||||
| 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 |
| BA | 12/10/18 | $322.24 | 322.5 | 317.0 | $2.05 | 327.5 | $8.50 | -$11.95 | $6.45 |
| $0.00 | $0.00 | ||||||||
| 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 | Total | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Loss | Cost |
| NONE | 12/10/18 | $0.00 | 0.0 | 0.0 | $0.00 | 0.0 | $0.00 | $0.00 | $0.00 |
| 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | $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 | ||||
| 50.0% | 50.0% | -3.4% | -9.9% | 40 | 18 | ||||
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 |
| CVX | 11/26/18 | $114.44 | 11/30/18 | $118.94 | 1 | $0.67 | $0.00 | $1.23 | $3.07 | $251 | $251 |
| $251 | |||||||||||
| $251 | |||||||||||
| Profit/Loss Blow Off Bottom Trades: | $251 | ||||||||||
| Weekly % Return: | 1.3% | ||||||||||
| 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 |
| BABA | 11/26/18 | $155.00 | 11/30/18 | $160.86 | 1 | $1.18 | $2.50 | $3.05 | $1.05 | -$332 | -$332 |
| $0 | -$332 | ||||||||||
| $0 | -$332 | ||||||||||
| Profit/Loss Blow Off Top Trades: | -$332 | ||||||||||
| Weekly % Return: | -1.7% | ||||||||||
| # Of Trades: | 2 | ||||||||||
| Total Risk Capital: | $20,000 | ||||||||||
| Total Profit/Loss: | -$81 | ||||||||||
| Total Weekly % Return: | -0.4% | ||||||||||
| Track Record | |||||||||||
| % | % Annualized | # Of | # Of | ||||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||||
| 50.0% | 50.0% | -3.4% | -9.9% | 40 | 18 | ||||||