Aug 2019: AAPL $195 – $205 Bull Call Spread
Stock
AAPL
Trade Structure
$195 - $205 Bull Call Spread
Trade Date
08/06/2019
Expiration Days
09/20/2019
Trade Rationale
With the whole market under pressure for the previous week, Apple got dragged down along with the market. All our indicators are finally pointing to the first signs of recovery. With 45 days remaining, we buy a $195 - $205 Bull Call Spread for $468. If AAPL expires above $205, I will make $500 approx in 45 days or less.
Trade Selection Criteria
Overall market movement
Overall market was under pressure for a week and dragged down all stocks along with it. The perfect setup that we always look out for!
No Earnings or Significant News
Earnings are behind us and were announced on 7/30. There is no significant news or earnings event during our trade cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.
RSI Analysis
RSI changing directions indicating a reversal in trend.
ADX Analysis
ADX flat. The previous downward momentum seems to have lost its strength.
Trade Analysis
Trade Outcome
Winning Trade
Profit/Loss
$514
Beginning Account Balance
$
Ending Account Balance
$
Great job!
I appreciate the kind words. If you don’t mind, kindly leave a 1 liner review for my book.
Nice trade. I’m curious as to why you didn’t choose the 190-200 Bull Call Spread given that AAPL was trading as 195.
I always do ATM spreads to keep the math simple.