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.
What Can Happen At Expiration And What Action Should I Take?
- If Stock Closes At Or Below The Short Call Strike Price. Close The Spread (Possible Loss)
- If Stock Closes Above The Short Call Strike Price. Close Or Expire The Spread (Profit)
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.
What Can Happen At Expiration And What Action Should I Take?
- If Stock Closes At Or Above The Short Put Strike Price. Close The Spread (Possible Loss)
- If Stock Closes Below The Short Put Strike Price. Close Or Expire The Spread (Profit)
This Week’s One-Day Wonder Trades – Thursday
One-Day Wonder Trades, if any are posted on Thursday around 3:00 AM EST.
Results for this week’s trades will be posted over the weekend on the Scoreboard.
| Bullish – One-Day Wonder Horizontal Trade | Combined Risk Capital: | $10,000 | |||||||
| Market | Open | Short | Long | Open | Max Dollar | % | |||
| Open | Edge | Stock | 09/20/24 | 09/27/24 | Call Debit | Risk Per | Max Capital | Probability | |
| Symbol | Date | Opinion | Price | Exp. Call | Def. Call | Spread | Spread | % Risk | Of Profit |
| NONE | 09/19/24 | Bullish | |||||||
| Bearish – One-Day Wonder Horizontal Trade | |||||||||
| Market | Open | Short | Long | Open | Max Dollar | % | |||
| Open | Edge | Stock | 09/20/24 | 09/27/24 | Put Debit | Risk Per | Max Capital | Probability | |
| Symbol | Date | Opinion | Price | Exp. Put | Def. Put | Spread | Spread | % Risk | Of Profit |
| AAPL | 09/19/24 | Bearish | $229.45 | 225.0 | 230.0 | $3.01 | $301.00 | 3.0% | 51.6% |
| JPM | 09/19/24 | Bearish | $210.72 | 207.5 | 210.0 | $2.01 | $201.00 | 2.0% | 52.2% |
| % Probability Of Profit: The % of returning at least $0.01 at the time of expiry. This figure is derived from 30-day Implied Volatility. | |||||||||
| Exp. Option = This Friday’s Expiration Serial. | Def. Option = Next Friday’s Expiration Serial | ||||||||
| Prices Are Thursday Afternoon’s Around 3:00 PM | |||||||||
The information contained herein has been carefully compiled from sources believed to be reliable, but its accuracy is not guaranteed. Past performance is not necessarily indicative of future results. Traders should read The Option Disclosure Statement before trading options. No representation is made that any account is likely to achieve profits or losses similar to those shown. Due to the possibility of human and/or mechanical error by The Optionomics Group LLC, Inc., its sources or others does not guarantee the accuracy, completion or availability of any information contained herein and is not responsible for any errors or omissions or for results obtained from the use of such information.