Dec 2019 – NFLX $315-$300 Put Debit Spread
Trade Selection Criteria
Overall market movement
Market just hit an all time high with SPY touching $322 for the first time.
No Earnings or Significant News
Earnings are behind us and the next earnings are going to be announced on 1/21/2020 which comes after our expiration cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are barely outside Keltner Channels.
RSI is not in overbought territory and is still rising.
ADX is weak. Reflecting back this convinced me that the upward movement was not sustainable.