Nov 2019: AAPL $257- $247 Bear Put Spread

Stock

AAPL

Trade Structure

$257.5- $247.5 Bear Put Spread

Trade Date

11/06/2019

Expiration Days

12/06/2019

Trade Rationale

With stock market ripping upwards and making new all time highs for days, every stock in my watchlist is shooting to the moon. Although, AAPL earnings were great, it is way past that point for the stock to keep going up. The market is due for a correction, and I bought a $257 - $247 Bear Put Spread for my mean reversion trade. I paid $366 for this trade and have the potential to double it if AAPL expires at or below $247

AAPL_Nov_6 | Mean Reversion Trading Using Options

Trade Selection Criteria

Overall market movement

With S&P 500 making new all time highs, the overall market and practically every stock in my watchlist is making new highs. With the first signs of a loss in upward momentum, it is a great time to put on some mean reversion trades

CHECK

No Earnings or Significant News

Earnings are behind us and were announced on 10/30. There is no significant news or earnings event during our trade cycle.

CHECK

Bollinger Bands outside Keltner Channels

Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.

CHECK

RSI Analysis

RSI is curving downwards after being in overbought zone for some time. RSI has still not gone below the 70 line though, so we are jumping in slightly prematurely.

CHECK

ADX Analysis

ADX is flat, indicating that the previous upward momentum has lost its strength.

CHECK

Trade Analysis

Analysis will be updated, when we close the Trade

Trade Outcome

Pending

Profit/Loss

$N/A

Beginning Account Balance

$16,100

Ending Account Balance

Grow 00 into ,000 in a year or less (1) | Mean Reversion Trading Using Options

Copy of Untitled | Mean Reversion Trading Using Options

To follow along the strategies we use in the $25K challenge, we recommend that you get the strategy book which explains the whys and wherefores of our method. Get it here=> https://amzn.to/2MUOCE5

5 Comments

Daniel De Vos on December 27, 2019 at 7:36 pm
Yes, I would like to follow your trades. How can I subscribe to the signals?
- Nishant on December 30, 2019 at 12:15 am
  If you have joined our facebook group, I post trades there for the current challenge. https://www.facebook.com/groups/743491719408974/
  - JL Bil on June 17, 2020 at 3:58 am
    Hi, I just submitted a facebook group request. I’ll come from King Louis
steven schwartz on September 13, 2020 at 4:57 am
Please provide trade analysis and outcome.
d w on February 18, 2021 at 8:40 pm
Why is there still no results for this trade? It was a losing trade!

Nov 2019: AAPL $257- $247 Bear Put Spread

Trade Rationale

Trade Selection Criteria

Overall market movement

No Earnings or Significant News

Bollinger Bands outside Keltner Channels

RSI Analysis

ADX Analysis

Trade Analysis

To follow along the strategies we use in the $25K challenge, we recommend that you get the strategy book which explains the whys and wherefores of our method. Get it here=> https://amzn.to/2MUOCE5

5 Comments

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