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 Put Long Put Long Call
Open Stock 04/05/19 04/05/19 Spread 04/12/19 Long Call Total 100%
Stock Date Price Strike Price Strike Price Credit Strike Price Debit Cost Target
NONE 04/01/19 $0.00 0.0 0.0 $0.00 0.0 $0.00 $0.00 $0.00
$0.00 $0.00
Blow Off Top Horizontal Trade (Bearish)
Open Short Call Long Call Long Put
Open Stock 04/05/19 04/05/19 Spread 04/12/19 Long Put Total 100%
Stock Date Price Strike Price Strike Price Credit Strike Price Debit Cost Target
PG 04/01/19 $103.25 103.0 105.0 $0.77 105.0 $2.01 $1.24 $2.48
V 04/02/19 $156.79 157.5 160.0 $0.64 160.0 $3.30 $2.66 $5.32
SPY 04/02/19 $285.76 286.0 288.0 $0.79 287.5 $2.80 $2.01 $4.02
Track Record
Risk Capital—-> $20,000
% Annualized # Of # Of
Win % Loss % P/L P/L Trades Weeks
67.9% 32.1% 23.1% 92.2% 29 13

Results for this week’s trades will be posted over the weekend on the Scoreboard.