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: | Bullish | |||||||
Off-Strike Horizontal Bearish Trade | ||||||||
Market | Open | Short | Long | |||||
Open | Edge | Stock | Option | ATM -1, -2 | ATM +1, +2 | Debit | Debit | |
Stock | Date | Opinion | Price | Put/Call | Exp Option | Def Option | Spread | Target |
JPM | 08/30/18 | Bearish | $115.40 | Put | 115.0 | 118.0 | $2.63 | $5.26 |
UTX | 08/30/18 | Bearish | $132.32 | Put | 132.0 | 135.0 | $2.47 | $4.94 |
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 |
JPM | 08/30/18 | Bearish | $115.40 | $114.58 | $2.63 | $3.08 | $0.45 | 45.00 | 45.00 |
UTX | 08/30/18 | Bearish | $132.32 | $131.70 | $2.47 | $2.90 | $0.43 | 43.00 | 88.00 |
Number Of Round Trip Trades: | |||||||||
Profit/Loss Bullish Spreads: | $45.00 | ||||||||
Profit/Loss Bearish Spreads: | $43.00 | ||||||||
Total Profit/Loss: | $88.00 | ||||||||
Total Risk Capital: | $20,000 | ||||||||
Weekly % Return: | 0.4% | ||||||||
*Transaction Fees NOT Included In Results | |||||||||
Percent | Percent | # Of | # Of | % | NET % | Annualized | |||
Win Trades | Loss Trades | Trades | Targets | Target | P/L | ROI | |||
65.0% | 34.9% | 45 | 3 | 6.7% | 7.8% | 19.2% |