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
One-Day Wonder Trades, if any are posted on Thursday around 3:00 AM EST.
| Market Edge ‘Market Posture’ | Neutral | ||||||||
| Bullish – Off-Strike One-Day Wonder Horizontal Trade | Risk Capital | $20,000 | |||||||
| Market | Open | Short Call | Long Call | % | |||||
| Open | Edge | Stock | 12/06/19 | 12/13/19 | Debit | 100% | Max | Risk Capital | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target | Risk | Max Risk |
| WMT | 12/05/19 | Bullish | $118.24 | 118.0 | 115.0 | $2.97 | $5.94 | $5.97 | 3.0% |
| MCD | 12/05/19 | Bullish | $193.99 | 195.0 | 190.0 | $4.21 | $8.42 | $9.21 | 4.6% |
| Bearish – Off-Strike One-Day Wonder Horizontal Trade | Risk Capital | $20,000 | |||||||
| Market | Open | Short Put | Long Put | % | |||||
| Open | Edge | Stock | 12/06/19 | 12/13/19 | Debit | 100% | Max | Risk Capital | |
| Stock | Date | Opinion | Price | Strike Price | Strike Price | Spread | Target | Risk | Max Risk |
| NONE | 12/05/19 | Bearish | $0.00 | 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% |
| $0.00 | $0.00 | 0.0% | |||||||
| 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 trades will be posted over the weekend on the Scoreboard.