Sept 2019: GOOG $1220- $1230 Bull Call Spread
Stock
GOOG
Trade Structure
$1220-$1230 Bull Call Spread
Trade Date
09/27/2019
Expiration Days
10/15/2019
Trade Rationale
During this month, the market is mostly range bound and not giving many trading opportunities. You will notice most of trades appear unusual and I am trying to make some money by trading the tight range.
Trade Selection Criteria
Overall market movement
SPY pulled back from its all time high of 302 to 294 but is showing signs of going back up again. Overall a range bound market
No Earnings or Significant News
Earnings are behind us and the next earnings will be after our expiration cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.
RSI Analysis
RSI has flattened out, but is not touching the overbought and oversold zone.
ADX Analysis
ADX is flat and low confirming that the stock is range bound. There is no trend in place.
Trade Analysis
This spread immediately went against me as soon as I put it on, however as expiration neared it bounced back up and I was able to close it for a profit.
If you had bought a regular Call, you would have been wiped out and lost money on this trade.
Trade Outcome
Winner
Profit/Loss
$332
Beginning Account Balance
$9,395
Ending Account Balance
$15,000
