MAR 2021: ARKK $110 – $115 Bull Call Spread



Trade Structure

$110- $115 Call Spread

Trade Date


Price Paid


Expiration Days



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Trade Rationale

I have been eyeing Cathy Wood’s ARKK for a while. It’s performance follows Nasdaq closely. But it fell down 30% from its peak on 2/22 and has presented multiple opportunities to enter into trades. There is a clear support at $110, which is where I entered this trade. As long as Nasdaq stays healthy and QQQ stays above $320 level, this trade is going to be a clear winner. Notice that I gave this trade 60 days (instead of the usual 30 days) to work out in my favor due to the 12% correction that we just experienced in Nasdaq. Refer to Chapter 12 of my book to learn why I did this.

Trade Selection Criteria

Overall market movement

Nasdaq has been in a massive correction the entire month of March. Making use of the deep discount that every stock is trading at this time.

No Earnings or Significant News


Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside the Keltner Channels.

RSI Analysis

RSI is in over-sold territory and not showing any clear signals. However, support/resistance and ADX are supporting this trade. 

ADX Analysis

DI- is pointing down. In addition to this the clear support at $110 is a factor for taking this trade. 

Trade Analysis

Analysis will be updated when we close this trade.

Trade Outcome




Beginning Account Balance


Ending Account Balance


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