Quick Take: One Day Wonder – Bullish Trade
Time Frame: One Day.
Underlying Stock: Bullish Market Edge Opinion – No Position.
Desired Stock Price Direction: Up.
Option Position: Long Differed ATM -1or -2 Call – Short Expiring ATM +1 or +2 Call.
Desired Result: The stock performs as anticipated. The short expiring call expires worthless and the long call gains additional premium.
Maximum Risk: Initial debit spread amount.
Quick Take: One Day Wonder – Bearish Trade
Time Frame: One Day.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Down.
Option Position: Long Differed ATM +1 or +2 Put – Short Expiring ATM -1 or -2 Put.
Desired Result: The stock performs as anticipated. The short expiring put expires worthless and the long put gains additional premium.
Maximum Risk: Initial debit spread amount.
This Week’s One-Day Wonder Trades
Market Posture: | Bearish | |||||||
Off-Strike Horizontal Bullish Trade | ||||||||
Market | Open | Short Call | Long Call | |||||
Open | Edge | Stock | Option | ATM +1 +2 | ATM -1, -2 | Debit | Debit | |
Stock | Date | Opinion | Price | Type | Exp Option | Def Option | Spread | Target |
None | 10/25/18 | Bullish | Call | |||||
Def Option = Next Friday’s Expiration Serial | ||||||||
Exp Option = This Friday’s Expiration Serial | ||||||||
Prices Are Thursday Afternoon’s Around 3:00 PM | ||||||||
Market Posture: | Bearish | |||||||
Off-Strike Horizontal Bearish Trade | ||||||||
Market | Open | Short Put | Long Put | |||||
Open | Edge | Stock | Option | ATM -1, -2 | ATM +1, +2 | Debit | Debit | |
Stock | Date | Opinion | Price | Type | Exp Option | Def Option | Spread | Target |
DE | 10/25/18 | Bearish | $137.71 | Put | 135.0 | 141.0 | $4.30 | $8.60 |
$0.00 | ||||||||
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 One-Day Wonder Trades
Market | Open | Close | Open | Closed | Spread | Actual | Total | ||
Open | Edge | Stock | Stock | Debit | Credit | Profit | Profit | Profit | |
Stock | Date | Opinion | Price | Price | Spread | Spread | Loss | Loss | Loss |
DE | 10/25/18 | Bearish | $137.71 | $133.00 | $4.30 | $6.75 | $2.45 | 245.00 | 245.00 |
$0.00 | 0.00 | 245.00 | |||||||
Total Weekly Profit/Loss: | $245.00 | ||||||||
Total Risk Capital: | $20,000 | ||||||||
Weekly % Return: | 1.2% | ||||||||
*Transaction Fees NOT Included In Results | |||||||||
Track Record | |||||||||
Percent | Percent | # Of | # Of | NET % | Annualized | ||||
Win Trades | Loss Trades | Trades | Weeks | P/L | ROI | ||||
67.8% | 32.2% | 62 | 29 | 10.2% | 18.3% |