Feb 2020: RUT $1615- $1635 Bull Call Spread
Trade Selection Criteria
Overall market movement
DOW dropped a crazy 700 points due to the ongoing corona virus scare, taking down many stocks with it dragging many stocks and indexes down with it.
No Earnings or Significant News
N/A Earnings don’t apply to Indexes and ETFs
Bollinger Bands outside Keltner Channels
Bollinger bands are outside Keltner Channels and the price is touching the lower Bollinger Band
RSI bounced back after momentarily touching 30 indicating a trend reversal opportunity.
ADX is below 20 indicating the downward movement that RUT has been experiencing since 1/20 has no legs.
Beginning Account Balance
Ending Account Balance
Read your book very recently; you seem to have devised quite a terrific strategy.
However, am rather perplexed about this RUT trade – especially when you state its still open. If your trade rules call for exiting at a 50% loss, then your loss level on this position should have been hit quite a while back; for RUT has, like the broader market, been dropping like a rock and as of the close on 20th March was priced at just over $1000. If you’ve held the trade all the way(and I doubt you did so), it would have expired worthless.
I also have other queries after reading your book, but I guess I’ll shoot you an email for those.
Meantime, looking forward to have your feedback on this one.
Looks like I forgot to update this trade’s results. I will update today.