DEC 2020: MRNA $125- $135 Bull Call Spread
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Selection Criteria
Overall market movement
There is no extreme movement in Nasdaq. This was a trade similar to a post-earnings trade.
No Earnings or Significant News
Earnings are behind us and were announced on 10/29
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside the Keltner Channels.
RSI is inconclusive but is showing signs of turning up.
ADX not 100% clear but is pointing down indicating the downward momentum may have lost its legs.
Beginning Account Balance
Ending Account Balance
hello, i just finished reading your book. Thanks for the information shared. I am ready to try your challenge. However, I am confused because in your book you refer to trading extremes whit mean reversion, but in your book, the stock that are shown, seems to be in range, not in extremes? And in this particular trade (MRNA), you buy in the middle of bollinger bands?
I do many kinds of trades in our private group. I have gone into detail about mean reversion trades in my first edition of the book. I have explained pre-earnings and post-earnings trades in the second edition of the book. In addition to that, I also do squeeze trades and support/resistance trades as well.
Pierre – there is value-add to the online private group. More involved techniques that still fall in line with the concepts of the book, but to a greater degree are discussed and debated almost daily. A lot of the second edition came out of ideas and strategies developed within the online community under Nishant’s expert guidance.
Hello Mr. Nishant, I read your first book. Thanks for sharing your trading strategies.
When the trade went against you, I don’t see that you tried to adjust your trade. There are other strategies like roll the options down, ratio back spread or collar trade that can turn a bad trade to a winner. When you handle losing trades, I see you closed the trade if the loss is 50% of your investment. What is the reason you don’t adjust a losing trade?
I’m a beginner in options trading, any insight would be greatly helpful.
I don’t do anything to the trade if there are > 15 days left to expiration. Also, I don’t believe in adjustments. Although this trade was a partial winner, losing is part of trading and you should accept that. Rolling promotes the wrong trading mentality that you will not have any losers. When you roll you are pretty much taking a loss on the old trade and opening a new trade. By keeping my trading simple I am able to achieve 80% – 85% winners because instead of focusing on salvaging losing trades, I spend my focus and energy on finding new winning trades.