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JUL 2021: WDAY $225- $230 Bull Call Spread

Stock

WDAY

Trade Structure

$225- $230 Call Spread

Trade Date

07/20/2021

Price Paid

$250

Expiration Days

8/20/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

A picture-perfect mean reversion trade! You will find these trades documented in my book too. All our mean reversion indicators are in place with this trade. DI- turning down, DI+ turning up, RSI turning up, plus the stock bouncing at support. A green candle after a DOJI. Literally every single box can be checked on this trade. These picture perfect trades don’t show up often, but they do come around every now and then.

Trade Selection Criteria

Overall market movement

There was a brief pullback in Nasdaq which generated several trading opportunities

No Earnings or Significant News

Earnings are behind us and were announced on 5/26

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels.

RSI Analysis

RSI sharply turning up.

ADX Analysis

DI+ is sharply turning up and DI- is turning down

Trade Analysis

At the time of opening the trade, this looked like a great trade. However, WDAY got stuck in a sideways consolidation phase and chopped around in a tight trading zone throughout the trading window. This accompanied with the pullback in the market last week, forced me to get out of this trade at 53% ROI instead of the usual 94% which I shoot for.

Trade Outcome

WINNER

Profit/Loss

$133

Beginning Account Balance

$15,200

Ending Account Balance

$14,700

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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