Nov 2019: AAPL $257- $247 Bear Put Spread
Trade Selection Criteria
Overall market movement
With S&P 500 making new all time highs, the overall market and practically every stock in my watchlist is making new highs. With the first signs of a loss in upward momentum, it is a great time to put on some mean reversion trades
No Earnings or Significant News
Earnings are behind us and were announced on 10/30. There is no significant news or earnings event during our trade cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.
RSI is curving downwards after being in overbought zone for some time. RSI has still not gone below the 70 line though, so we are jumping in slightly prematurely.
ADX is flat, indicating that the previous upward momentum has lost its strength.
Beginning Account Balance
Ending Account Balance