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 premium (air) is the short expiring call goes to zero while 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 premium (air) in the short expiring put goes to zero while 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 |
| IBM | 12/13/18 | Bullish | $120.58 | Call | 121.0 | 116.0 | $4.63 | $7.87 |
| MSFT | 12/13/18 | Bullish | $109.05 | Call | 110.0 | 105.0 | $4.36 | $7.41 |
| 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 | 12/13/18 | Bearish | $0.00 | Put | 0.0 | 0.0 | $0.00 | $0.00 |
| $0.00 | $0.00 | |||||||
| Track Record | ||||||||
| Percent | Percent | # Of | # Of | # Of | NET % | Annual | ||
| Win Trades | Loss Trades | Trades | Weeks | Targets | P/L | ROI | ||
| 68.1% | 31.9% | 70 | 34 | 0 | 11.2% | 17.2% | ||
| 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
Results for this week’s trades will be posted over the weekend following the close of trading on Friday.