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MAR 2021: MDB $250 – $260 Bull Call Spread

Stock

MDB

Trade Structure

$350- $360 Call Spread

Trade Date

3/29/2021

Price Paid

$500

Expiration Days

05/21/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

To participate in our live challenge and to access our online training, please click “Your Account” and upgrade to the “Live Trader” plan.

 

Trade Rationale

Every now and then I get to document picture perfect trades life these. MDB sold off after earnings and I was waiting for the downward momentum to come to an end before putting on this trade. A green candle combined with RSI popping its head above oversold territory caused me to take this trade. MDB is already trading at $290 and this trade looks like a sure shot winner at this point. NOTE: We went out 60 days for this trade to workout in our favor due to the correction happening in Nasdaq. Read Chapter 12 in my book to find out why I did this.

Trade Selection Criteria

Overall market movement

N/A this is a post earnings trade. The individual stock’s price action is more important for these trades.

N/A

No Earnings or Significant News

This is a post earnings trade. Earnings were announced today. 

N/A

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside the Keltner Channels.

RSI Analysis

This is a post earnings trade. Our regular indicators don’t apply here since all these trades are taken based on Support/Resistance levels. I have described these in the 2nd edition of my book as well.

N/A

ADX Analysis

This is a post earnings trade. Our regular indicators don’t apply here since all these trades are taken based on Support/Resistance levels. I have described these in the 2nd edition of my book as well.

N/A

Trade Analysis

Analysis will be updated when we close this trade.

Trade Outcome

PENDING

Profit/Loss

$N/A

Beginning Account Balance

$9,800

Ending Account Balance

$N/A

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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