Nov 2019: AMZN $1800- $1790 Bear Put Spread
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. AMZN is showing no strength even though the market is ripping higher and higher.
No Earnings or Significant News
Earnings are behind us and were announced on 10/24. There is no significant news or earnings event during our trade cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are barely outside Keltner Channels. Normally, I wouldn’t have taken this trade. However, I am making an exception because the overall market is extremely extended to the upside.
RSI is flat is not giving us any clear signs.
ADX is low at 16, clearly confirming that the stock is range-bound.
Beginning Account Balance
Ending Account Balance