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 | Long Call | |||||||
| Open | Stock | 07/05/19 | 07/05/19 | Spread | 07/12/19 | Long Call | Total | 100% | Max | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target | Risk |
| NONE | 07/01/19 | $0.00 | $0.00 | $0.00 | ||||||
| $0.00 | $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 | 07/05/19 | 07/05/19 | Spread | 07/12/19 | Long Put | Total | 100% | Max | |
| Stock | Date | Price | Strike Price | Strike Price | Credit | Strike Price | Debit | Cost | Target | Risk |
| JPM | 07/01/19 | $114.33 | 114.0 | 116.0 | $0.68 | 117.0 | $3.05 | $2.37 | $4.74 | $4.37 |
| NVDA | 07/01/19 | $170.23 | 170.0 | 172.5 | $1.11 | 175.0 | $6.95 | $5.84 | $11.68 | $8.34 |
| UAL | 07/02/19 | $89.30 | 89.0 | 91.0 | $0.74 | 92.0 | $2.91 | $2.17 | $4.34 | $4.17 |
Results for this week’s trades will be posted over the weekend on the Scoreboard.