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: | Neutral | ||||||
| Off-Strike Horizontal Bullish Trade | |||||||
| Market | Open | Short Call | Long Call | ||||
| Open | Edge | Stock | 04/05/19 | 04/12/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| NONE | 04/04/19 | Bullish | $0.00 | 9.0 | 0.0 | $0.00 | $0.00 |
| $0.00 | |||||||
| Off-Strike Horizontal Bearish Trade | |||||||
| Market | Open | Short Put | Long Put | ||||
| Open | Edge | Stock | 04/05/19 | 04/12/19 | Debit | 100% | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target |
| BABA | 04/04/19 | Bearish | $181.57 | 180.0 | 182.5 | $2.80 | $5.60 |
| Track Record | |||||||
| Percent | Percent | # Of | # Of | NET % | Annual | ||
| Win Trades | Loss Trades | Trades | Weeks | P/L | ROI | ||
| 66.3% | 31.4% | 84 | 44 | 12.1% | 14.2% | ||
| 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.