Aug 2019: FB $185-$195 Call Spread



Trade Structure

$185-$195 Call Debit Spread

Trade Date


Expiration Days


Trade Rationale

After the whole market had been under pressure for a week, this was the first day where the 3 indices were showing signs of recover. FB also showed us a nice green candle after being in oversold territory.

Trade Selection Criteria

Overall market movement

The overall market had been under pressure for a week and was showing signs of recovery after being in oversold territory.

No Earnings or Significant News

Earnings are behind us and were announced on 7/24. 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 is showing clear signs of change in trend after being in oversold territory.

ADX Analysis

DI- is pointing downwards pointing to a lose in momentum of the previous downward trend. ADX is not showing any clear signs.

Trade Analysis

Although, it sounded like a great trade. And in fact the 2 other trades we did on that day (GOOG, AMZN) turned out to be 100% profitable. FB just got stuck in a sideways pattern and never recovered. Fortunately, we didn't lose any money on this trade. In fact we made a whopping $17!! With 7 days remaining to expiration, we decided to close this trade on 9/11.

Trade Outcome




Beginning Account Balance


Ending Account Balance


To follow along the strategies we use in the $25K challenge, we recommend that you get the strategy book which explains the whys and wherefores of our method. Get it here=>