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AUG 2021: GPN $165- $170 Bull Call Spread

Stock

GPN

Trade Structure

$165-$170 Call Spread

Trade Date

8/12/2021

Price Paid

$250

Expiration Days

9/17/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

I have been watching GPN ever since it crashed even after an earnings beat. But it doesn’t offer weekly expirations so when it gave an opportunity on 8/5 I didn’t take it as the only expiration available was 9/17 which was too far (we were filling up 9/10 expiration at that time). I entered this trade when we got a second opportunity on 8/12. The stock is already trading at 171, so things are looking decent at this point.

Trade Selection Criteria

Overall market movement

This trade is a post earnings trade. With these kind of trades I pay attention to the individual stock movement more than anything else. The overall market movement does not factor much into it. 

N/A

No Earnings or Significant News

This is a post-earnings trade. The earnings were announced a few days ago.

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels.

RSI Analysis

RSI is sharply turning up

ADX Analysis

DI- is turning down and DI+ is turning up at the same time.

Trade Analysis

Oh boy! wait for the losers in September to be documented here. We were hit with a 7.8% mini correction in Nasdaq but the correction was so prolonged that it did a ton of damage.

Trade Outcome

LOSER

Profit/Loss

$-250

Beginning Account Balance

$17,500

Ending Account Balance

$17,200

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