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 | 03/15/19 | 03/22/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| MCD | 03/14/19 | Bullish | $182.59 | 182.5 | 180.0 | $2.59 | $5.18 |
| WMT | 03/14/19 | Bullish | $98.31 | 98.5 | 97.5 | $1.16 | $2.32 |
| Off-Strike Horizontal Bearish Trade | |||||||
| Market | Open | Short Put | Long Put | ||||
| Open | Edge | Stock | 03/15/19 | 03/22/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| NONE | 03/14/19 | 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.