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: | Bullish | ||||||
| Off-Strike Horizontal Bullish Trade | |||||||
| Market | Open | Short Call | Long Call | ||||
| Open | Edge | Stock | 03/08/19 | 03/15/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| V | 03/07/19 | Bullish | $146.25 | 147.0 | 145.0 | $2.13 | $4.26 |
| ILMN | 03/07/19 | Bullish | $291.31 | 292.5 | 290.0 | $4.70 | $9.40 |
| Off-Strike Horizontal Bearish Trade | |||||||
| Market | Open | Short Put | Long Put | ||||
| Open | Edge | Stock | 03/08/19 | 03/15/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| NONE | 03/07/19 | Bearish | $0.00 | 0.0 | 0.0 | $0.00 | $0.00 |
| Track Record | |||||||
| Percent | Percent | # Of | # Of | NET % | Annual | ||
| Win Trades | Loss Trades | Trades | Weeks | P/L | ROI | ||
| 63.8% | 33.7% | 78 | 41 | 9.6% | 12.2% | ||
| 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 trades will be posted over the weekend on the Scoreboard.