Dec 2019: BKNG $2067- $2037 Bear Put Spread
Trade Selection Criteria
Overall market movement
Overall market has been on a tear for weeks. I mean look at BKNG, looks like it is invincible and will never stop. However, our first red candle after this extended trend combined with RSI is giving us a possible trading opportunity here.
No Earnings or Significant News
Earnings are behind us and the next earnings will be after our expiration cycle. Earnings scheduled for 02/26/2020
Bollinger Bands outside Keltner Channels
Bollinger Bands are clearly outside Keltner Channels. Perfect time for a mean reversion trade
RSI finally dipped below 70 after being in over-bought territory for quite some time, indicating a possible trend reversal.
ADX is weak and does not give any clear signals about the current trend.
Beginning Account Balance
Ending Account Balance