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 | Spread | Long Call | |||||
| Open | Stock | 02/22/19 | 02/22/19 | 03/01/19 | Long Call | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| NONE | 02/18/19 | $0.00 | $0.00 | ||||||
| $0.00 | $0.00 | ||||||||
| Blow Off Top Horizontal Trade (Bearish) | |||||||||
| Open | Short Call | Long Call | Spread | Long Put | |||||
| Open | Stock | 02/22/19 | 02/22/19 | 03/01/19 | Long Put | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| JNJ | 02/18/19 | $136.16 | 136.0 | 138.0 | $0.81 | 138.0 | $3.10 | $2.29 | $4.58 |
| V | 02/20/19 | $144.26 | 144.0 | 146.0 | $0.82 | 146.0 | $2.41 | $1.59 | $3.18 |
| JPM | 02/20/19 | $105.27 | 105.0 | 107.0 | $0.74 | 108.0 | $3.03 | $2.29 | $4.58 |
| Track Record | |||||||||
| Risk Capital—-> | $20,000 | ||||||||
| % | Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 83.3% | 16.7% | 10.4% | 89.8% | 13 | 6 | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.