AUG 2021: GPN $165- $170 Bull Call Spread
Stock
GPN
Trade Structure
$165-$170 Call Spread
Trade Date
8/12/2021
Price Paid
$250
Expiration Days
9/17/2021
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
I have been watching GPN ever since it crashed even after an earnings beat. But it doesn’t offer weekly expirations so when it gave an opportunity on 8/5 I didn’t take it as the only expiration available was 9/17 which was too far (we were filling up 9/10 expiration at that time). I entered this trade when we got a second opportunity on 8/12. The stock is already trading at 171, so things are looking decent at this point.
Trade Selection Criteria
Overall market movement
This trade is a post earnings trade. With these kind of trades I pay attention to the individual stock movement more than anything else. The overall market movement does not factor much into it.
No Earnings or Significant News
This is a post-earnings trade. The earnings were announced a few days ago.
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside Keltner Channels.
RSI Analysis
RSI is sharply turning up
ADX Analysis
DI- is turning down and DI+ is turning up at the same time.
Trade Analysis
Oh boy! wait for the losers in September to be documented here. We were hit with a 7.8% mini correction in Nasdaq but the correction was so prolonged that it did a ton of damage.
Trade Outcome
LOSER
Profit/Loss
$-250
Beginning Account Balance
$17,500
Ending Account Balance
$17,200
