APR 2021: UPST $100-$105 Bull Call Spread
Stock
UPST
Trade Structure
$100 - $105 Call Spread
Trade Date
4/15/2021
Price Paid
$250
Expiration Days
05/21/2021
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
UPST gapped up to $165 on an earnings beat before giving up its gains and is now consolidating around support which lies around $102. Although, next support is all the way down to $80, but I don’t see any reason for the stock to drop further than this at this point. And if markets stay stable, we should see a bounce back up from here in the coming week.
Trade Selection Criteria
Overall market movement
N/A – There is nothing drastic going on in the overall Market. ABNB has dropped on no material news
No Earnings or Significant News
Earnings were showing after 5/21 when we took the trade, which was later revised. See trade analysis for details on this.
Bollinger Bands outside Keltner Channels
This is a post-earnings trade. We use support/resistance for these as other indicators are mostly irrelevant for these kind of trades
RSI Analysis
Trade was taken based on support/resistance levels
ADX Analysis
Trade was taken based on support/resistance levels
Trade Analysis
What a wild ride this was. The markets have been so choppy since Feb 22nd that it is hard to make any money in this market. With UPST, the stock immediately sold off after we put on our trade. And then we realized that they were announcing earnings before our expiration. Since, the trade had pretty much lost all its value, I held this through earnings as a lotto ticket. Today, we closed the trade for a full 94% profit target.
Trade Outcome
WINNER
Profit/Loss
$235
Beginning Account Balance
$10,800
Ending Account Balance
$11,100
