DEC 2020: HD $260- $265 Bull Call Spread
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Selection Criteria
Overall market movement
There is no extreme movement in Nasdaq. This was a post-earnings trade, so the regular market indicators are not as relevant. I have talked about these trades in the second edition of my book.
No Earnings or Significant News
Earnings are behind us and were announced on 11/17
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside the Keltner Channels.
RSI is flat and inconclusive
ADX is flattish, but DI- is clearly showing signs that this downward momentum may have lost its legs.
Beginning Account Balance
Ending Account Balance