Quick Take: One Day Wonder – Bullish Trade
Time Frame: One Day.
Underlying Stock: Bullish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Up.
Option Position: Long Deferred ATM -1or -2 Call – Short Expiring ATM +1 or +2 Call.
Maximum Risk: Initial debit spread amount.
Summary: The stock performs as anticipated. The short expiring call expires worthless and the long deferred call gains additional premium.
Quick Take: One Day Wonder – Bearish Trade
Time Frame: One Day.
Underlying Stock: Bearish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Down.
Option Position: Long Deferred ATM +1 or +2 Put – Short Expiring ATM -1 or -2 Put.
Maximum Risk: Initial debit spread amount.
Summary: The stock performs as anticipated. The short expiring put expires worthless and the long deferred put gains additional premium.
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 |
| FDX | 11/15/18 | Bullish | $228.50 | Call | 230.0 | 222.5 | $6.79 | $11.54 |
| $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 |
| NONE | 11/15/18 | Bearish | $185.46 | Put | 185.0 | 190.0 | $4.32 | $7.34 |
| $0.00 | $0.00 | |||||||
| Track Record | ||||||||
| Percent | Percent | # Of | # Of | # Of | NET % | Annual | ||
| Win Trades | Loss Trades | Trades | Weeks | Targets | P/L | ROI | ||
| 69.9% | 30.1% | 66 | 31 | 0 | 10.8% | 18.0% | ||
| 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 |
| FDX | 11/15/18 | Bullish | $228.50 | Call | 6.79 | 5.31 | -$1.48 | -$148.00 | -148.00 |
| 0.00 | 0.00 | $0.00 | $0.00 | -148.00 | |||||
| Total Weekly Profit/Loss: | -$148.00 | ||||||||
| Total Risk Capital: | $20,000 | ||||||||
| Weekly % Return: | -0.7% | ||||||||
| *Transaction Fees NOT Included In Results | |||||||||
| Track Record | |||||||||
| Percent | Percent | # Of | # Of | NET % | Annualized | ||||
| Win Trades | Loss Trades | Trades | Weeks | P/L | P/L | ||||
| 67.7% | 32.3% | 67 | 32 | 10.0% | 16.3% | ||||