June 2020: NFLX $410 – $415 Bull Call Spread
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Selection Criteria
Overall market movement
We had a small pullback in the NASDAQ on 6/4, but nothing major.
No Earnings or Significant News
Earnings were just announced on 4/21 and are behind us
Bollinger Bands outside Keltner Channels
Yes, Bollinger Bands are wildly outside the Keltner Channels
RSI is pointing up, but this is irrelevant because we are not coming from an oversold situation. (i.e RSI wasn’t below 30 earlier). We used simple Support/Resistance for this trade.
ADX is at 21, which doesn’t give us much indication of the trend. Remember ADX should ideally be above 25 to generate reliable results.
Beginning Account Balance
Ending Account Balance