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 | 03/01/19 | 03/01/19 | 03/08/19 | Long Call | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| TLT | 02/25/19 | $121.10 | 121.0 | 119.0 | $0.51 | 119.0 | $2.18 | $1.67 | $3.34 |
| $0.00 | $0.00 | ||||||||
| Blow Off Top Horizontal Trade (Bearish) | |||||||||
| Open | Short Call | Long Call | Spread | Long Put | |||||
| Open | Stock | 03/01/19 | 03/01/19 | 03/08/19 | Long Put | Total | 100% | ||
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target |
| BA | 02/25/19 | $429.10 | 143.0 | 432.5 | $1.20 | 420.0 | $3.32 | $2.12 | $4.24 |
| SPY | 02/25/19 | $280.94 | 280.0 | 282.0 | $1.12 | 284.0 | $3.87 | $2.75 | $5.50 |
| Track Record | |||||||||
| Risk Capital—-> | $20,000 | ||||||||
| % | Annualized | # Of | # Of | ||||||
| Win % | Loss % | P/L | P/L | Trades | Weeks | ||||
| 80.0% | 20.0% | 10.9% | 80.7% | 16 | 7 | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.