Quick Take: One Day Wonder – Bullish Trade
Time Frame: One Day.
Underlying Stock: Bullish Market Edge Opinion – No Position.
Desired Stock Price Direction: Up.
Option Position: Long Differed ATM -1or -2 Call – Short Expiring ATM +1 or +2 Call.
Desired Result: The stock performs as anticipated. The short expiring call expires worthless and the long call gains additional premium.
Maximum Risk: Initial debit spread amount.
Quick Take: One Day Wonder – Bearish Trade
Time Frame: One Day.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Down.
Option Position: Long Differed ATM +1 or +2 Put – Short Expiring ATM -1 or -2 Put.
Desired Result: The stock performs as anticipated. The short expiring put expires worthless and the long put gains additional premium.
Maximum Risk: Initial debit spread amount.
This Week’s One-Day Wonder Trades
| Market Posture: | Bearish | |||||||
| Off-Strike Horizontal Bullish Trade | ||||||||
| Market | Open | Short Call | Long Call | |||||
| Open | Edge | Stock | Option | ATM +1, +2 | ATM -1, -2 | Debit | Debit | |
| Stock | Date | Opinion | Price | Type | Exp Option | Def Option | Spread | Target |
| NONE | 11/01/18 | Bullish | $0.00 | $0.00 | ||||
| $0.00 | $0.00 | |||||||
| Def Option = Next Friday’s Expiration Serial | ||||||||
| Exp Option = This Friday’s Expiration Serial | ||||||||
| Prices Are Thursday Afternoon’s Around 3:00 PM | ||||||||
| Market Posture: | Bearish | |||||||
| Off-Strike Horizontal Bearish Trade | ||||||||
| Market | Open | Short Put | Long Put | |||||
| Open | Edge | Stock | Option | ATM -1, -2 | ATM +1, +2 | Debit | Debit | |
| Stock | Date | Opinion | Price | Type | Exp Option | Def Option | Spread | Target |
| MSFT | 11/01/18 | Bearish | $105.95 | Put | 104.0 | 108.0 | $2.78 | $4.73 |
| UNH | 11/01/18 | Bearish | $260.54 | Put | 257.5 | 262.5 | $4.12 | $7.00 |
| Track Record | ||||||||
| Percent | Percent | # Of | # Of | # Of | NET % | Annual | ||
| Win Trades | Loss Trades | Trades | Weeks | Targets | P/L | ROI | ||
| 67.8% | 32.2% | 62 | 29 | 0 | 10.2% | 18.3% | ||
| Def Option = Next Friday’s Expiration Serial | ||||||||
| Exp Option = This Friday’s Expiration Serial | ||||||||
| Prices Are Thursday Afternoon’s Around 3:00 PM | ||||||||
Results For This Week’s One-Day Wonder Trades
| Market | Open | Close | Open | Closed | Spread | Actual | Total | ||
| Open | Edge | Stock | Stock | Debit | Credit | Profit | Profit | Profit | |
| Stock | Date | Opinion | Price | Price | Spread | Spread | Loss | Loss | Loss |
| MSFT | 11/01/18 | Bearish | $105.95 | $106.16 | $2.78 | $2.81 | $0.03 | 3.00 | 3.00 |
| UNH | 11/01/18 | Bearish | $260.54 | $261.01 | $4.12 | $4.23 | $0.11 | 11.00 | 14.00 |
| Total Weekly Profit/Loss: | $14.00 | ||||||||
| Total Risk Capital: | $20,000 | ||||||||
| Weekly % Return: | 0.1% | ||||||||
| *Transaction Fees NOT Included In Results | |||||||||
| Track Record | |||||||||
| Percent | Percent | # Of | # Of | NET % | Annualized | ||||
| Win Trades | Loss Trades | Trades | Weeks | P/L | ROI | ||||
| 68.9% | 31.1% | 64 | 30 | 10.3% | 17.8% | ||||