Feb 2020: FB $200- $210 Bull Call Spread
Stock
Trade Structure
Trade Date
Expiration Days
Trade Rationale
Trade Selection Criteria
Overall market movement
DOW dropped 600 points due to the ongoing corona virus scare.
No Earnings or Significant News
Earnings are behind us and were announced on 1/29
Bollinger Bands outside Keltner Channels
N/A – This is not a mean reversion trade in the traditional sense (i.e the typical mean reversion trades I normally do). So, we can’t use any of our usual indicators here.
RSI Analysis
N/A – This is not a mean reversion trade in the traditional sense (i.e the typical mean reversion trades I normally do). So, we can’t use any of our usual indicators here.
ADX Analysis
N/A – This is not a mean reversion trade in the traditional sense (i.e the typical mean reversion trades I normally do). So, we can’t use any of our usual indicators here.
Trade Analysis
Trade Outcome
Profit/Loss
Beginning Account Balance
Ending Account Balance
Please let us know what happened with this trade.
Thank you.
I have updated the trade.
Hi Nishant. You mention that there was hardly any time until expiration when you took this trade off, but it seems like there was still plenty of time… You placed the trade on 2/3/20 and took it off on 2/21/20. The expiration wasn’t until 3/20/20. Please explain why you took the trade off so early.
Steven, Good catch! I tried to find my notes for this trade but couldn’t locate it. There is definitely something missing in my notes here. The only thing I could see if I look at backdated charts is that there was a DI- and DI+ cross over on the ADX accompanied by RSI falling down. I probably took it off because this indicates a drastic change in a stock’s direction. (In fact that is what happened after the day I closed it)