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APR 2021: UPST $100-$105 Bull Call Spread

Stock

UPST

Trade Structure

$100 - $105 Call Spread

Trade Date

4/15/2021

Price Paid

$250

Expiration Days

05/21/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

UPST gapped up to $165 on an earnings beat before giving up its gains and is now consolidating around support which lies around $102. Although, next support is all the way down to $80, but I don’t see any reason for the stock to drop further than this at this point. And if markets stay stable, we should see a bounce back up from here in the coming week.

Trade Selection Criteria

Overall market movement

N/A – There is nothing drastic going on in the overall Market. ABNB has dropped on no material news

N/A

No Earnings or Significant News

Earnings were showing after 5/21 when we took the trade, which was later revised. See trade analysis for details on this.

Bollinger Bands outside Keltner Channels

This is a post-earnings trade. We use support/resistance for these as other indicators are mostly irrelevant for these kind of trades

N/A

RSI Analysis

Trade was taken based on support/resistance levels
N/A

ADX Analysis

Trade was taken based on support/resistance levels
N/A

Trade Analysis

What a wild ride this was. The markets have been so choppy since Feb 22nd that it is hard to make any money in this market. With UPST, the stock immediately sold off after we put on our trade. And then we realized that they were announcing earnings before our expiration. Since, the trade had pretty much lost all its value, I held this through earnings as a lotto ticket. Today, we closed the trade for a full 94% profit target.

Trade Outcome

WINNER

Profit/Loss

$235

Beginning Account Balance

$10,800

Ending Account Balance

$11,100

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

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